Core Insights - The stablecoin market has outpaced the broader cryptocurrency ecosystem in 2023, growing 42% year-to-date compared to 21% for the overall crypto market, largely due to the U.S. GENIUS Act [1][2] - Stablecoins now represent approximately 7.5% of the total $3.8 trillion crypto market cap and about 1.3% of the U.S. M2 money supply, an increase of 35 basis points since the beginning of the year [1] Market Dynamics - The stablecoin market cap has increased by 19% since the signing of the GENIUS Act on July 18, indicating that regulatory measures have spurred adoption [2] - Circle's USDC has emerged as a significant beneficiary, with its market cap rising from $61.5 billion at the end of June to $73.7 billion by late September, capturing a 25.5% share of the stablecoin market, an increase of about 400 basis points [3] Competitive Landscape - Tether's market dominance has decreased from 67.5% at the start of the year to 60.4%, while Ethena's USDe has gained traction, reaching $14.4 billion in circulation and securing a 5% market share [4] - The competitive balance in the dollar stablecoin market is shifting, with USDC increasing its share of the combined market from 24% at the start of the year to nearly 30% [4] Future Implications - The GENIUS Act may further favor Circle, although a more fragmented market could benefit liquidity service providers like Bullish, which supports a growing number of stablecoin issuers [5]