JPMorgan Notes Stablecoin Market Rally, Circle’s USDC Emerging as Key Winner

Stablecoin Market Booms on GENIUS Act, USDC Gains Momentum: JPMorgan

JPMorgan analysts report that the U.S. GENIUS Act has accelerated stablecoin adoption, driving a 42% year-to-date increase in the market and allowing Circle’s USDC to chip away at Tether’s dominance.

The stablecoin market now stands at nearly $300 billion, outpacing the 21% growth of the broader crypto ecosystem this year. Stablecoins account for roughly 7.5% of the $3.8 trillion crypto market cap and about 1.3% of U.S. M2 money supply, up 35 basis points since the start of 2025.

Since the act’s passage on July 18, stablecoins have gained 19%, underscoring how regulatory clarity is spurring adoption.

USDC has been the primary beneficiary, rising from $61.5 billion in June to $73.7 billion by late September, now holding 25.5% of the stablecoin market, up around 400 basis points year-to-date.

Tether (USDT) has seen its dominance decline from 67.5% to 60.4%, while Ethena’s synthetic stablecoin USDe has grown to $14.4 billion, capturing 5% market share.

JPMorgan notes that the longstanding USDT-USDC duopoly is shifting: USDC now controls nearly 30% of their combined share, up from 24% earlier this year. Analysts say the GENIUS Act may further favor Circle, while a more fragmented stablecoin market could benefit platforms like Bullish (BLSH) that provide liquidity across multiple issuers.