The total supply of stablecoins has surpassed $221 billion, making up more than 1% of the U.S. dollar M2 money supply.

Stablecoins, once a niche sector, now account for over 1% of the U.S. dollar M2 — a broad measure of money including cash and deposits — money supply

The total stablecoin supply has surpassed $221 billion, making up more than 1% of the U.S. dollar M2 money supply.

Stablecoins, once a niche sector, now account for over 1% of the U.S. dollar M2 — a broad measure of money including cash and deposits — money supply, with the market reaching $221 billion after adding nearly $100 billion since 2024, according to data compiled by analysts at OurNetwork.

The largest stablecoin, Tether’s (USDT), saw its market share decrease from 73% to 64%, while Circle’s (USDC) increased from 20% to 25%. Together, the two largest stablecoins account for 89% of the total stablecoin market share.

The smallest stablecoins also saw some gains, with synthetic dollar USDe adding $5.9 billion and Usual’s USD0 growing by $1.1 billion. FDUSD, which initially gained traction through promotions, has eventually “lost market share as these incentives ended and competition intensified,” the analysts wrote.

Per OutNetwork, USDC’s recent growth has been mainly pumped by adoption beyond Ethereum’s mainnet. The analysts note that the stablecoin issuer saw “explosive growth” of more than $7.7 billion worth of USDC on Solana, “likely fueled by a surge in meme coin trading activity.”

On top of that, USDC also saw gains on Ethereum’s layer-2 solutions like Coinbase’s Base and Arbitrum.

Meanwhile, Circle CEO Jeremy Allaire appears set on strengthening the company’s U.S. presence, arguing that issuers of dollar-pegged tokens should be required to register in the U.S., especially in light of the recent administrative order from President Biden.

Allaire maintains that there “shouldn’t be a free pass” for stablecoin issuers in the U.S., which could make it more difficult for rival Tether to expand in the country after moving its headquarters to El Salvador.