Stablecoins Now 1.1% of US Dollar Supply

[Chawla Solutions]

In a striking development, stablecoins now account for 1.1% of the total U.S. dollar supply, according to data visualized by Token Terminal. This comparison is based on the U.S. M2 money supply—a broad measure that includes cash, checking deposits, and easily convertible near-money—and the total circulating supply of all stablecoins like USDT, USDC, and DAI.
While the 1.1% share might seem small, it’s a significant leap for digital dollar alternatives. Stablecoins barely registered a decade ago. Today, they’ve become essential tools in global finance, enabling fast, borderless, and low-cost transactions across crypto markets, DeFi platforms, and even remittances.
As of early 2025, the US M2 money supply stands around $21 trillion, implying a stablecoin circulation of over $230 billion. This growth is fueled by increasing demand for on-chain liquidity, institutional adoption, and rising distrust in traditional banking infrastructure following recent collapses and inflation concerns.
Unlike central bank-issued money, stablecoins are programmable and transparent. Their rising market share suggests growing confidence in blockchain-based financial tools—despite ongoing regulatory scrutiny in the U.S. and abroad.
If current growth continues, stablecoins could capture an even larger slice of the monetary system, potentially pressuring central banks to accelerate CBDC (Central Bank Digital Currency) development.
This 1.1% milestone is more than symbolic—it signals a gradual yet powerful shift in how people hold and move value in the digital age.