In the entire 2024, the wider cryptocurrency market has performed well, especially with the unusual growth in the market capitalization of stablecoins, with USDT and USDC dominance.
Today in this informative piece we will dive deep to understand whether the stablecoins category has the potential to surpass Altcoins and memecoins in the entire 2025.
So before understanding the primary reason, let’s decode what exactly are stablecoins, and how are they different from other types of available blockchain-based currency in the digital asset market.
What makes stablecoins different from other cryptocurrencies?
Stablecoins are the type of blockchain-based currencies whose value is pegged to the US dollar or of some other commodity, and the majority of these have a value equal to one US dollar.
However, no stablecoins are fiat-backed or supported by any national currency, some of them have been backed by their in-house native tokens.
The adoption of digital assets especially stablecoins has seen a staggering growth in the past few quarters, and the remains argued behind the spike is the unique feature and less hassle in transacting.
In terms of characteristics, stablecoins aim to minimize price volatility, making them more suitable for everyday transactions and commercial use cases. They typically experience lower price fluctuations compared to other crypto and are often pegged to a fiat currency, such as the USD.
Additionally, some stablecoins offer redeemability for the underlying asset or fiat currency. Stablecoins have a wide range of applications that are still growing. They are perfect for payments and transactions since they enable quick, safe, and affordable transactions.
Decentralized finance (DeFi) applications including lending, borrowing, and yield farming also make extensive use of stablecoins. They can also lower the expenses and complications of conventional cross-border transactions, which makes them a desirable choice for international trade and remittances.
Milestones marked by stablecoin market in 2024
Issuers of stablecoins were able to record a staggering $664 million in income in the last month of 2024, which accounted for more than 40% of the entire revenue produced by such protocols.
Source: Defillama
It is noteworthy that Tether, the USDT issuer, was the largest contributor in terms of income, coming in at $532.10 million, closely followed by Circle, which came in at $132.77 million.
With over $200 billion in market value and around 90% of the market, Tether and Circle dominate the stablecoin space. Stablecoins are essential to the DeFi ecosystem. They act as a starting point for people who want to learn more about decentralized finance.
Since November 2024, the combined market value of the primary stablecoins USDT, USDC, and Dai has grown by more than $25 billion. This pattern bodes well for DeFi’s future. Because it demonstrates the rising acceptance and faith in these digital assets.
Stablecoins to grow in 2025 surpassing Altcoins and memecoins!
Stablecoins offer price stability since they are based on fiat currencies like the U.S. dollar or commodities, in contrast to altcoins and memecoins, which are frequently prone to high volatility.
With their distinct features and increasing usefulness, stablecoins might overtake altcoins and memecoins by 2025.
Source: CoinMarketCap
Because of their reliability, users may avoid the dangers involved with speculative investments and use them for regular transactions, remittances, and as a store of money.
Their extensive use in DeFi applications, such as yield farming, lending, and borrowing, solidifies their standing as a useful and trustworthy class of digital assets.
Source: Coinglass
The steady rise of stablecoins is evidence of their growing significance in the crypto landscape as the industry develops. Stablecoins are poised to overtake altcoins and memecoins in 2025, changing the structure of the digital asset market, thanks to their growing acceptance in the institutional and retail sectors and their crucial role in DeFi.
Conclusion
In 2024, stablecoins showed tremendous promise, setting themselves up to transform the crypto industry in 2025. They are perfect for transactions, remittances, and DeFi applications like lending, borrowing, and yield farming because of their stability, tied to fiat currencies like the US dollar, and low volatility.
Stablecoins are gaining traction in both the retail and institutional sectors because of their dependability and usefulness, in contrast to altcoins and memecoins, which are based on speculation.
Stablecoins are poised to overtake altcoins and memecoins as key components of the digital asset market, connecting blockchain technology with traditional banking, thanks to industry leaders like Tether and Circle.
