The stablecoin market size approaches $310 billion. Why is USDT still the core of market liquidity?

January 19 News, the stablecoin market is迎来 a new round of expansion, with USDT’s dominant position being reinforced once again. Amid increasing market volatility, stablecoins continue to serve as the “funding buffer” for the crypto market, acting as an important medium for spot and derivatives trading, as well as an indispensable liquidity foundation within the DeFi ecosystem. Therefore, they have become a key indicator of the intersection of institutional funds, whales, and retail investor behaviors.

Latest data shows that the total market capitalization of stablecoins has risen to approximately $309 billion, highlighting their core role in the structure of the crypto market. Several industry research institutions predict that by 2030, the stablecoin market size could expand to $1.6 trillion, and the long-term role of stablecoins in the global financial system is being reevaluated. On-chain data around USDT and USDC also provide clear clues for assessing changes in market structure.

From a market landscape perspective, Tether’s USDT and Circle’s USDC still dominate, with market caps of about $176 billion and $76 billion respectively. USDT remains the most frequently used stablecoin among retail traders, spot markets, and DeFi, but its main networks, Ethereum and Tron, have recently seen a significant decline in on-chain activity. Currently, the stablecoin supply on Ethereum is about $148.1 billion, and on Tron, $74.5 billion. The decrease in trading volume reflects a cooling in retail participation and on-chain speculative demand.

In contrast, the allocation of institutional funds is shifting. Due to stronger regulatory compliance, USDC is gradually becoming an important tool for institutional participation in the crypto market. Data from Alphractal shows that, despite a slowdown in overall stablecoin trading, USDC’s trading volume continues to grow, though it has not yet returned to the peak levels of 2021, indicating that institutional strategies are leaning more towards prudence and risk control.

In terms of fund distribution, the total amount of stablecoins held on trading platforms is approximately $87.5 billion. Regionally, North America remains the most active area for stablecoin trading, followed by Europe and Asia. This means that U.S. macro policies, interest rate expectations, and trade environment changes will continue to influence stablecoin demand and capital flows.

In the market environment of 2026, stablecoins are no longer just trading tools but are a direct reflection of capital allocation, risk appetite, and macroeconomic expectations. As a core liquidity asset, USDT’s usage trend will continue to profoundly influence the operation rhythm and structural evolution of the crypto market for a considerable period.