Tether (USDT) Supply Hits New High Amid Heightened Market Activity

The supply of Tether (USDT) stablecoin is growing, with it now sitting at 181 billion in circulation. The recent mintings added over 4.5 billion in USDT supply to meet rising demand from institutions and on-chain trading, showing that stablecoins remain a key part of crypto markets.

As per DeFiLlama data, USDT supply currently amounts to total $181.406 billion, suggesting the total supply as 181.4 billion as each token is backed by $1 in collateral. It dominates the stablecoin sector with nearly 60% shares, followed by Circle’s USDC with 24.6% and a supply of 75.7 billion tokens. 

Surge in stablecoin supply in 2025 

The stablecoin market has experienced a remarkable surge in supply throughout 2025. It was largely driven by growing institutional adoption, favorable regulatory developments, and increasing demand for stable digital assets. By mid-2025, the total stablecoin supply surpassed $300 billion and it is projected to increase to $ 400 billion by year-end at this pace of growth. 

This surge, highlighted by a record $15.6 trillion in transfer volumes during Q3 2025, underscores stablecoins’ role as a cornerstone of the digital economy, particularly in DeFi and cross-border payments. 

Ethereum’s dominance in hosting 69% of new issuances, coupled with centralized stablecoins like USDT and USDC accounting for 90% of the market, reflects the sector’s robust expansion, potentially catalyzing broader cryptocurrency market growth as adoption reaches a mainstream tipping point. 

Stablecoins are increasingly bridging traditional finance and decentralized networks. It also enables cross-border stablecoin transfers, reducing settlement times from days to hours and lowering fees from about 2% to 0.3%. By combining regulatory compliance with automated DeFi processes, it shows how stablecoins can be used beyond basic trading.

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