Under the influence of institutional interests and Trump policies, the total market capitalization of stablecoins exceeded 230 billion US dollars.

Source: The Block: The total market capitalization of stablecoins has surpassed 230 billion USD for the first time, data shows:

In a speech on Thursday, U.S. President Trump reiterated his support for dollar-based stablecoins.

The U.S. Senate Banking Committee recently voted to pass the "GENIUS Act," which aims to establish a legal framework for stablecoins.

Due to the efforts of U.S. regulators to promote the adoption of stablecoins, the total market capitalization of stablecoins exceeded 230 billion dollars for the first time on Thursday.

According to data from DefiLlama, the total market capitalization is currently $230.45 billion, having increased by $2.3 billion over the past week. Compared to the same day last year, the market capitalization of stablecoins has grown by 56%.

In the entire market capitalization, Tether's USDT stablecoin occupies 62.6% of the market share, close to 144 billion dollars, followed by Circle's USDC, with a market capitalization of 59 billion dollars.

The stablecoin market reached nearly $190 billion in April 2022, but later that year, there was a significant decline due to the collapse of the Terra-Luna stablecoin ecosystem and the crises of major crypto companies including FTX, Celsius, and BlockFi. The market capitalization of stablecoins steadily decreased until it began to rebound in mid-2023.

Nick Ruck, head of LVRG Research, told The Block that the latest expansion of stablecoins is attributed to increased institutional participation in crypto.

"Over the past year, the United States and Hong Kong have reduced legal barriers and streamlined the process for traditional financial companies, including banks, to participate more in crypto," Ruck said.

The crypto analyst pointed out that major institutions like PayPal have created their own stablecoins for cross-border transactions and on-chain transactions.

"The increase in stablecoins could also indicate that institutional and investor conditions are bracing for better trading conditions and the market's continued bull trend," Ruck added.

Regulatory enhancement

In his latest speech at the Thursday crypto conference, U.S. President Trump reiterated his ambition to promote stablecoins pegged to the dollar to enhance the global dominance of the dollar. Data from DefiLlama shows that since Trump took office on January 20, the total market capitalization of stablecoins has increased by approximately $20 billion.

"I urge Congress to pass groundbreaking legislation that establishes simple, common-sense rules for stablecoins and market structure," Trump stated. "Under the right legal framework, institutions of all sizes will be unleashed to invest, innovate, and participate in one of the most exciting technological revolutions in modern history."

Bo Hines, the executive director of the President's Advisory Council on Digital Assets, stated earlier this week at the same meeting that stablecoin legislation could be completed in the coming months.

On March 13, the Senate Banking Committee voted to advance the "GENIUS Act" proposal. This proposal aims to establish a regulatory framework for stablecoins, including mandatory 1:1 backing and anti-money laundering protections.

Paul Howard, the Senior Director of the crypto trading company Wincent, said: "After the repeal of SAB 121, the current government expects Congress to pass legislation supporting the adoption of stablecoins."

Howard said: "The crypto community and the broader financial markets can expect to see the rapid adoption of stablecoins as a mechanism for internal and cross-border payments. This is a long-delayed step in leveraging technology."