The stablecoin market has expanded rapidly over the past year, with total supply increasing 72% to nearly $300 billion, according to data analytics platform Artemis.
Much of that growth has been focused on Ethereum and Solana, with the recent launch of Plasma being a milestone. More than $6 billion of stablecoins were issued on the network in the first week, setting a new on-chain debut record, Artemis said in a report on Wednesday.
A stablecoin is a cryptocurrency whose value is tied to another asset, such as the US dollar or gold. They play an important role in the cryptocurrency market, providing payment infrastructure and are also used for international money transfers. Tether’s USDT is the largest stablecoin, followed by Circle’s USDC.
According to the report, the dominance of Tether’s USDT and Circle’s (CRCL) USDC remains clear, with the two tokens continuing to account for over 85% of the market. However, their dominance has loosened somewhat as competition from emerging issuers and new platforms has increased.
The surge is not just a supply issue. Artemis said the expansion of use cases reflects the growing role of stablecoins in the financial system. USD AI, for example, introduced a model that allows deposits to fund GPU loans for artificial intelligence (AI) companies, turning stablecoin holdings into private credit-like yield vehicles.
Plasma’s significant over-issuance highlights how quickly new networks can secure liquidity, while MiniPay’s growth on Celo signals a rebound in retail adoption, with transaction volumes surging in 2025, according to the report.
This expansion of utility is also blurring the lines between stablecoin platforms and banks. Artemis pointed out that Squads currently has secured over $2 billion in assets, representing 15% of Solana’s total stablecoin supply. Meanwhile, RAIN’s Series B round is contributing to the expansion of card-linked stablecoin spending, which is approaching $1 billion.
Even centralized exchanges are starting to resemble neobanks, with platforms such as Binance, OKX, and Coinbase (COIN) offering payment rails, debit cards, and savings tools based on stablecoins, the report added.
Artemis framed this change as part of a broader structural evolution. Stablecoins are no longer just a tool for crypto traders, but an emerging financial layer that increasingly mirrors core banking functions.
read more: Stablecoins will disrupt cross-border payments, says investment bank William Blair
