USDT market cap skyrockets to $160B as stablecoin economy explodes by $257B in just 7 days

The stablecoin economy has added another $2.693 billion in just seven days, with the USDT market cap reaching a historic $160 billion. Data from DefiLlama shows the total stablecoin market now stands at $257.751 billion as of July 12, 2025, with Tether (USDT) maintaining a dominant 62.13% share.

The rapid growth shows the increasing liquidity in crypto markets, as traders flock to dollar-pegged assets amid ongoing volatility in Bitcoin and altcoins.

USDT market cap nears all-time high with $671M weekly inflow

According to CoinMarketCap, Tether’s USDT market cap grew by 0.42% over the past week, adding $671.3 million to reach $160.15 billion—just shy of its record peak. Despite its slower percentage growth compared to rivals, USDT remains the undisputed leader, accounting for nearly two-thirds of the entire stablecoin market.

“Tether’s liquidity and deep market penetration make it the go-to stablecoin for institutional and retail traders,” says Mark Palmer, head of research at Blockchain Insights. “Its growth reflects broader capital inflows into crypto as investors seek stability.”

Meanwhile, Circle’s USDC posted the largest gains, surging 2.12% with a $1.31 billion increase in supply. The jump suggests renewed trust in the asset after its recovery from 2023’s banking crisis.

USDC, PYUSD, and smaller stablecoins gain traction

While the USDT market cap continues to dwarf competitors, other stablecoins are making strides:

• PayPal’s PYUSD rose 1.85%, adding $16.1 million.

• Tron’s USDD skyrocketed 19.28%, the highest among top stablecoins.

• USDf and Ripple’s RLUSD also saw notable gains of 10.09% and 6.69%, respectively.

The growth highlights a diversifying market, where newer entrants challenge Tether’s dominance. “Investors are hedging their bets beyond USDT, especially with regulatory scrutiny lingering,” notes Carla Harris, a crypto economist at Digital Asset Strategies.

What’s driving the stablecoin boom?

Analysts point to three key factors behind the sector’s expansion:

1. Risk-off sentiment: Traders are parking funds in stablecoins amid Bitcoin’s price stagnation.

2. DeFi activity: Yield farming and lending protocols demand stablecoin liquidity.

3. Institutional adoption: Hedge funds and payment firms increasingly use stablecoins for settlements.

With the USDT market cap setting records and rivals gaining ground, the stablecoin economy shows no signs of slowing. However, experts warn that regulatory actions—particularly from the U.S. SEC—could reshape the landscape in the coming months.

“The real test will be how these assets hold up under tighter oversight,” says Palmer. “For now, the market is voting with its dollars—literally.”