The growth of stablecoins comes with the risk of financial ecosystem collapse.
Alternatives to dollar-backed stablecoins are growing, with Tether and Circle’s share threatened.
The market capitalization of stablecoins has surged to over $230 billion, increasing by 90% since late 2023. Using stablecoin for international transactions has strengthened the US dollar as the dominant global currency.
Stablecoins Face Systemic Bank Run Risks
As previously mentioned in our report, the total stablecoin supply grew by $16.97 billion since the start of 2025. These digital assets increased from around $194.2 billion to $211.2 billion in circulation, reflecting growing liquidity within the crypto sector.
Still, there are rising concerns that stablecoins trigger systemic risks similar to past financial crises. Stablecoin holders may rush to redeem their tokens for cash during market turmoil. This situation usually forces issuers to sell off their reserve assets, creating instability in the f
