Stablecoins are finally gaining attention. Interest in these digital assets has surged to an all-time high this month, according to Google search data. Why? Stablecoin issuance is booming as a result of regulations being approved, and institutions are hopping on board to introduce their own tokenized fiat equivalents. What a crazy ride!
After the entire Terra algorithmic fiasco, stablecoins were already causing a stir in May 2022, but they are now gaining attention once more. Interest spiked in mid-June and again in mid-July after the Guiding and Empowering Nation's Innovation for US Stablecoins (GENIUS) Act was passed on July 18.
According to one cryptocurrency analyst, "The DeFi Investor," on X, "Stablecoins are the product that can onboard the first billion people on-chain."
Stablecoins Are Exploding—Really!
Bitwise, a cryptocurrency asset management company, wasn't afraid to say that stablecoins are exploding. And it's difficult to dispute that given that stablecoin market values and transactions have reached all-time highs this year. "You can't spell 'stablecoins' without 'parabolic,'" tweeted Ethereum treasury firm SharpLink. I couldn't agree more.
According to CoinGecko, the total market capitalization of stablecoins is currently an astounding $272 billion, or roughly 7% of the entire cryptocurrency market capitalization. Naturally, Tether holds a 60% market share and 98% of this is tied to the US dollar. It appears that Tether remains the dominant stablecoin.
Stablecoins are going parabolic. pic.twitter.com/Fwj8b0Hhwg
— Bitwise (@BitwiseInvest) July 28, 2025
However, what caused the unexpected spike in interest? Stablecoins are becoming more popular as a hedge against cryptocurrency volatility, claims Nassar Al Achkar, chief strategy officer at CoinW. Many people are turning to stablecoins as a safe haven because of the extreme market volatility. They can assist institutions in remaining connected to the cryptocurrency world without being affected by the erratic price fluctuations and are ideal for cross-border payments.
Institutions are also getting in on the action, with many announcing plans to launch their own stablecoins. Everyone seems to be searching for a safer way to get their foot in the crypto pool while still satisfying the increasing demand for digital assets from investors.
Matvii Diadkov
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