The total stablecoin supply also saw a 63% increase year-on-year. Additionally, stablecoin transfer volumes skyrocketed, hitting $4.1 trillion in February of 2025. Analysts see this growth as a sign that the crypto bull cycle is still very much intact, despite macroeconomic uncertainties ahead of the FOMC meeting. Meanwhile, US lawmakers are advancing stablecoin regulations, with the GENIUS Act gaining bipartisan support to solidify the dollar’s dominance in on-chain finance.
Stablecoin Supply and Activity See Explosive Growth
A joint report by on-chain analysis platforms Artemis and Dune revealed that active stablecoin wallets surged by over 50% in a year. The report is titled The State of Stablecoins 2025: Supply, Adoption & Market Trends, and shares the details about how active stablecoin addresses grew from 19.6 million in February of 2024 to 30 million in February of 2025. Overall, this is a 53% year-on-year increase.
A stablecoin is a type of cryptocurrency that is designed to maintain a stable value by being pegged to a reserve asset. This could be to the US dollar, gold, or other fiat currencies. Unlike volatile cryptocurrencies, stablecoins offer price stability, which makes them very ideal for payments, remittances, and trading.
(Source: Dune / Artemis)
The rise in active stablecoin wallets proves the deepening role of stablecoins as a bridge between traditional finance and crypto, especially with their adoption expanding across payments, decentralized finance (DeFi), and institutional use.
Alongside the growth in active addresses, the total stablecoin supply also saw a sharp increase. In February 2024, the market held $138 billion in stablecoins, but by February 2025, that figure climbed to $225 billion, which is a 63% rise. Given that stablecoins maintain a fixed value of $1, their market cap directly correlates with their total supply.
Data from the report also showed that stablecoin transfer volume experienced an even more dramatic expansion. In February of 2024, monthly transfer volume stood at $1.9 trillion. By February of 2025, it jumped to $4.1 trillion, which is a 115% year-on-year increase. The peak transfer volume was recorded in December 2024 when it reached $5.1 trillion, though volumes tapered off in early 2025. Over the past year, stablecoins facilitated a total of $35 trillion in transactions.
(Source: Dune / Artemis)
Despite the surge in active addresses and total supply, the average transfer size stayed relatively stable. The figure slightly increased from $676,000 in 2024 to $683,000 a year later. However, noticeable spikes were seen in May and July, where the average transfer size rose to $2.6 million and $2.2 million, respectively. This suggests that there was significant institutional or whale activity during those months.
Artemis and Dune analysts believe that these fluctuations reflect the dual use of stablecoins across retail and institutional transactions.
Stablecoin Supply Rise Means Bull Cycle in Tact
The ongoing crypto market correction is not the end of the bull cycle but rather a midpoint, according to analysts, as the steadily increasing stablecoin supply suggests continued investment inflows. The total stablecoin supply has now exceeded $225 billion, which certainly reinforces the view that the market has not yet reached its peak.
Historically, stablecoin supply peaked at cycle tops, according to crypto intelligence platform IntoTheBlock. The firm pointed out that in April of 2022, stablecoin supply hit $187 billion just as the bear market began, whereas the current figure continues to rise. This could indicate that the market is still in a mid-cycle phase. Rising stablecoin inflows to exchanges are often seen as a sign of increasing buying pressure, as stablecoins serve as a key on-ramp from fiat to the crypto ecosystem.
Despite the growing stablecoin supply, there is still some uncertainty in the market, particularly ahead of the upcoming Federal Open Market Committee (FOMC) meeting. Crypto markets, much like traditional equities, are very sensitive to macroeconomic developments.
Stella Zlatareva, dispatch editor at Nexo digital asset investment platform, shared that Bitcoin’s movements continue to align with the S&P 500, reflecting a cautious sentiment among traders awaiting key economic data, including US retail sales figures and the FOMC meeting.
All attention is now focused on today’s FOMC meeting, as investors are looking for clarity on US monetary policy and potential interest rate changes. Recent economic data, including declines in US Producer Price Index (PPI) and initial jobless claims, suggest a slowing economy, which only adds to the anticipation surrounding the Fed’s decision. Current market estimates from the CME Group’s FedWatch tool indicate a 99% probability that the Federal Reserve will maintain its current interest rate stance.
(Source: CME Group)
Despite potential short-term volatility, investor sentiment is still optimistic for the rest of 2025. Asset management firm VanEck even projected a cycle top of $6,000 for Ethereum and a $180,000 Bitcoin price later this year.
US Moves Closer to Stablecoin Legislation
Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, announced that comprehensive stablecoin legislation is expected to be finalized in the coming months as the government accelerates its efforts to maintain the US dollar’s dominance in on-chain activity. At the Digital Asset Summit in New York on March 18, Hines described stablecoin legislation as “imminent” after the Senate Banking Committee’s approval of the GENIUS Act last week.
Bo Hines speaking at the Digital Asset Summit
The bill is formally known as the Guiding and Establishing National Innovation for US Stablecoins Act, and it sets strict collateralization guidelines for stablecoin issuers and mandates full compliance with Anti-Money Laundering laws.
Hines also mentioned that there is strong bipartisan support for the bill, as lawmakers across party lines recognize the importance of securing US leadership in the stablecoin sector. He is also very optimistic that stablecoin legislation could reach the president’s desk in the next two months. According to Hines, the market may be underestimating the bill’s significance when it comes to strengthening US dollar dominance, improving payment rails, and reshaping financial markets.
The dominance of the US dollar in the stablecoin sector is already very evident, with digital dollars accounting for the vast majority of the $230 billion worth of stablecoins in circulation. While some industry experts believe that stablecoins will eventually become multicurrency, the dollar is still the primary choice for funding crypto accounts and facilitating cross-border transactions.
White House Crypto Summit (Source: YouTube)
US Treasury Secretary Scott Bessent also recently reinforced the administration’s commitment to using stablecoins as a tool to uphold the dollar’s global reserve status. At the White House Crypto Summit on March 7, Bessent stated that the Trump administration is determined to make sure that stablecoins boost the dollar’s dominance. He also pointed out that a well-structured regulatory framework will be key to achieving this goal.
