Stablecoins Market Share Jumps 33% as Investors Seek Safe Haven From Crypto Market Volatility

While crypto investors often seek the thrill of high-risk, high-reward opportunities, many are increasingly turning to stablecoins to weather market volatility.

Despite the optimism surrounding the crypto market’s recovery this year, many investors are still seeking safety and stability in the wake of last year’s turbulence. While crypto investors often seek the thrill of high-risk, high-reward opportunities, many are increasingly turning to stablecoins to weather market volatility.

This shift in preferences combined with regulatory clarity, growing institutional interest, and the rise of cross-border payments, DeFi (decentralized finance), and remittances has fueled stablecoins growth, helping them increase their market share in the past year.

According to data presented by CryptoPresales.com, stablecoins accounted for over 8% of the total crypto market cap last week, or 3% more than last March.

(Source: CryptoPresales.com)

Stablecoins have long been a safe spot for traders and investors, offering a hedge against price swings, and 2025 proved this trend again. After a spike in January, February saw crypto prices nosedive, fueling a surge in trading activity.

Although some investors took the opportunity to buy cryptocurrencies at lower prices, many engaged in panic selling, flocking to stablecoins for security.

The CoinMarketCap monthly trading volume ranking proves this. Tether, the world`s largest stablecoin by market cap, saw a massive 48% spike in trading volume, soaring to a whopping $4.15 trillion in February.

However, Tether’s market share also increased significantly. According to CryptoPresales analysis based on CoinMarketCap, Coingecko, and Defillama data, Tether alone now makes 4.86% of the total crypto market cap, or 33% more than last March. Most other major stablecoins have also seen their market shares grow.

(Source: CryptoPresales.com)

Statistics show that USDC now holds 1.99% of the total crypto market cap, up from 1.1% a year ago. Dai’s market share remained the same, standing at around 0.18%, while Ethena USD was the standout performer. Last week, the market cap of the synthetic stablecoin operating on the Ethereum blockchain stood at $5.41 billion, making up 0.18% of the total crypto market cap, a fourfold increase from 0.04% last March.

Statistics show the combined market cap of all stablecoins reached $229 billion last week, making up 8.05% of the overall crypto market, up from 5.13% in March 2024.

Bitcoin’s Market Share Also Grows While Altcoins Lose Ground

Just like stablecoins, Bitcoin, the world’s largest and most expensive crypto, has also seen its market share grow. Last week, Bitcoin made 58.7% of the total crypto market cap, up from 49.6% last March.

(Source: CryptoPresales.com)

On the other hand, many altcoins are losing ground, as ongoing uncertainty and market volatility push investors to more stable, reliable assets. Last week, the total market cap of altcoins stood at $1.19 trillion, making up 40.3% of the total crypto market cap, and marking a 2.4% drop year-over-year.