From Tether to the Trump-Backed USD1: The 7 Fastest-Moving Stablecoins of 2025

Core Insights - The performance of stablecoins is more influenced by transaction velocity than total market capitalization, as highlighted by Ripple Labs' RLUSD and Tether's USDT [1][3][5]. Group 1: Market Capitalization and Performance - Tether leads the stablecoin market with a market capitalization of $186 billion, having increased by 35% since the beginning of the year, and reported a profit of $10 billion in the first three quarters of 2025 [2][3]. - Circle's USDC has a market capitalization of $78.4 billion, up 78% by December 15, 2025, and a velocity of 56 [7][8]. - RLUSD, Ripple's stablecoin, has a market capitalization of $1.3 billion and a high velocity of 71, indicating efficient transaction use [1][5]. Group 2: Regulatory Developments - The signing of the GENIUS Act and Ripple's provisional approval for a national banking charter mark significant regulatory advancements for stablecoins [5][9]. - Circle's operating model aligns with the newly established federal regulations, enhancing investor confidence [7]. Group 3: Transaction Velocity - Tether's transaction velocity is reported at 166, making it a key player in global crypto trading [3]. - USD1, launched in April, achieved a velocity of 39 despite limited data, indicating strong initial performance [10][11]. - PayPal USD (PYUSD) has a velocity of 18, with its market capitalization growing from over $1 billion in June to $3.8 billion by December 15 [13]. Group 4: Unique Features and Strategies - USDe, backed by a delta-neutral strategy, has a market capitalization of $6.5 billion, but its reliance on derivatives can lead to volatility [17][18]. - USDS, rebranded from DAI, has a low velocity of 1, as it primarily serves as collateral in DeFi loans rather than circulating as cash [19][20].