JPMorgan analysts said that the Stablescoin market has been taken from the wider crypto ecosystem this year, partially fueled by the adoption of the American engineering law.
At almost $ 300 billion, the market increased by 42% for the start, almost double the 21% growth in the crypto as a whole, according to a report published on Tuesday.
The report notes that the stablecoins now represent approximately 7.5% of the total market capitalization of 3.8 billions of dollars and approximately 1.3% of the US money supply M2, up 35 base points since the start of the year.
Stablecoins are cryptocurrencies whose value is linked to another asset, such as US dollar or gold. They play a major role in the markets of cryptocurrencies, providing, among other things, payment infrastructure, and are also used to transfer money internationally.
Since the signing of the Act on Engineering on July 18, the market capitalization of the stable has climbed by 19%, stressing how the regulations have accelerated adoption, according to the bank.
The largest beneficiary seems to be USDC in Circle (CRCL). JPMorgan analysts noted that after having stagnated earlier in the year, its market capitalization had jumped in the third quarter, going from $ 61.5 billion at the end of June to $ 73.7 billion by the end of September, which gives it a share of 25.5% of the stable market, up around 400 base points in 2025.
Tether, meanwhile, saw his domination shrinking, going from 67.5% at the start of the year to 60.4%, the bank said. Ethena’s synthetic Stablecoin USDE also gained ground, reaching $ 14.4 billion in circulation and guaranteeing a share of 5%.
For years, the USDT and the USDC have defined a duopoly on the Stablescoin market at a dollar, but this balance changes. JPMorgan said that the USDC had regularly ate the advance of Tether, now commanding almost 30% of the two -room combined share, compared to 24% at the start of the year.
The engineering law can be further towards the circle, analysts said, although a more fragmented market can ultimately benefit platforms like Bulsh (BLSH) which provide liquidity services for a growing list of stablecoin issuers.
Bulsh is the owner of Coindesk.
Find out more: The Battle of Stablecoin in the United States could be a zero-sum game: JPMorgan
