Stablecoin market grows 42%…USDC market share also surges

Since the U.S. stablecoin regulatory bill, the 'GENIUS Act', went into effect, the market has rapidly expanded. Circle's USDC is also quickly eating into Tether's (USDT) share.

On the 30th (local time), according to CoinDesk, JP Morgan analysts said in a report, "Year-to-date the stablecoin market reached about 300 billion dollars, growing 42% compared to the start of the year." They noted this is double the overall crypto asset market growth rate (21%) for the same period. They explained that especially since the GENIUS Act took effect last July, market capitalization increased 19% over three months, accelerating adoption.

USDC's share also surged. USDC jumped from 61.5 billion dollars at the end of June to about 73.7 billion dollars at the end of September, raising its stablecoin market share to 25.5%. Over the same period, Tether's share fell from 67.5% at the start of the year to 60.4%. ENA's synthetic stablecoin USDe also saw circulation rise to 14.4 billion dollars, reaching a market share of 5%.

JP Morgan analysts assessed that "the dollar-pegged stablecoin market has long been dominated by Tether and USDC, but this year the balance is shifting."

Meanwhile, the report added that while enforcement of the GENIUS Act could create a trend favorable to Circle, it could also lead to greater market dispersion due to issuer diversification. In that case, platforms like Bullish that provide liquidity to various issuers could benefit.