Stablecoins have become a significant force in the cryptocurrency landscape, now representing 30% of all crypto transaction volume, according to a newly released report by TRM Labs. The stablecoin market has experienced remarkable growth, with total transaction volume surpassing $4 trillion, showing an impressive 83% increase between July 2024 and July 2025.
The report indicates that stablecoins are not only gaining traction but also taking a larger slice of the overall crypto market compared to traditional cryptocurrencies such as Bitcoin and Ethereum. In fact, leading stablecoins saw a 52% increase in market share relative to the same period a year prior.
Angela Ang, TRM’s Head of Policy and Strategic Partnerships for the Asia-Pacific region, expressed optimism about the future of stablecoins. She highlighted that although adoption rates have reached new heights, stablecoins still account for only a small portion of the total money supply. As institutions begin to leverage digital assets for various applications, including value transfer, the interest in stablecoins is expected to continue its upward trajectory.
The report also notes that the stablecoin market remains heavily consolidated and largely focused on the U.S. dollar. Tether (USDT) and Circle (USDC) together controlled 93% of the market, with more than 90% of fiat-backed stablecoins pegged to the U.S. dollar. Currently, the total stablecoin market cap is estimated at around $312.2 billion. Market predictions suggest that this figure could surpass $360 billion before February 2026.
While stablecoins have made significant strides in legitimate transactions, they are also increasingly associated with illicit activities. In the year ending July 2025, stablecoin transactions accounted for 60% of all illicit crypto activity. Despite this, 99% of stablecoin usage remains within legal boundaries. The rise in illicit activity has been attributed to factors such as low transaction costs, speed, and widespread availability on open blockchains like TRON and Ethereum.
TRM noted that investment fraud has been a primary driver of the growth in illicit stablecoin activity, while extortion and blackmail activities within the stablecoin ecosystem saw a staggering 380% year-on-year increase from January to July 2025.
Geographically, South Asia has emerged as a leader in crypto adoption, recording an 80% year-on-year increase in transaction volume from January to July 2025, reaching $300 billion. Among the countries observed, India ranked highest in adoption, followed closely by the United States. Pakistan secured the third spot, whereas Bangladesh, despite its official ban on crypto, placed 14th.
TRM attributed India’s robust crypto adoption to its youthful population and strong developer infrastructure. Meanwhile, Pakistan’s interest in establishing a Virtual Assets Regulatory Authority (PVARA) signals potential for further growth in the region.
