Inside Stablecoins: $562M Net Issuance Since February, 70% Held by Top 100 Addresses

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Stablecoins have become the backbone of crypto market activity, acting as both a safe haven during volatility and a primary medium for trading and decentralized finance (DeFi) operations. Since February, the stablecoin ecosystem has seen a net issuance of $562 million, signaling renewed capital inflow into digital assets. Yet, despite broader adoption, wealth concentration remains stark—nearly 70% of all stablecoin supply is held by just 100 addresses. This article dives into the latest on-chain data to uncover trends in issuance, distribution, transaction behavior, and evolving market dynamics shaping the future of stablecoins.

USDT Maintains Dominance with 83% Market Share

Tether (USDT) continues to dominate the stablecoin landscape. As of March 9, the combined market capitalization of OMNI-USDT, ERC20-USDT, TRC20-USDT, and EOS-USDT reached $4.95 billion, accounting for 83.10% of the total stablecoin market.

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This marks a rebound from early 2019 when trust concerns briefly reduced USDT’s share to around 70%. Since then, aggressive multi-chain expansion—especially on Ethereum—has solidified its leadership.

Among USDT variants, ERC20-USDT now represents 61.35% of all USDT supply, up from previous levels, reflecting Tether’s strategic shift toward Ethereum's robust DeFi ecosystem. A notable surge occurred on February 20 and March 5, with market share increasing by 5.27% and 3.94% respectively. Meanwhile, TRC20-USDT saw a slight decline in both value and proportion.

Following USDT, USD Coin (USDC) holds second place with $459 million in market cap (7.7%). Other minor players include PAX (3.36%), TUSD (2.17%), BUSD (1.64%), and DAI (1.20%). While competition exists, none have significantly disrupted USDT’s stronghold.

$562M Net Issuance Since February: Liquidity Flows and Market Sentiment

From February 1 to March 9, stablecoins experienced 268 issuance events and 220 redemptions, averaging 7 issues and 6 redemptions per day. Total issuance amounted to $1.55 billion**, with **$981 million burned or redeemed, resulting in a net increase of $562 million.

The bulk of new liquidity came from ERC20-USDT, which issued $740 million** with no redemptions—making it the single largest contributor to circulating supply. BUSD followed with **$57 million net issuance, while USDC added $18 million.

Conversely, some stablecoins contracted:

This divergence highlights shifting preferences across chains and platforms.

To explore whether issuance reflects investor sentiment, we analyzed the correlation between net issuance and the Alternative.me Fear & Greed Index. The index measures market psychology using volatility, volume, surveys, social sentiment, and trends.

Interestingly, overall stablecoin net issuance shows no statistically significant correlation with market sentiment. However, deeper analysis reveals nuanced patterns:

These insights suggest that while macro-level trends may be neutral, individual stablecoins serve distinct behavioral roles in portfolio management.

Over $46 Billion in On-Chain Transactions: Usage Patterns Emerge

Since February, stablecoins have recorded over 5.23 million on-chain transactions, totaling more than $46.6 billion in value transferred.

ERC20-USDT leads with:

TRC20-USDT, OMNI-USDT, and USDC also surpassed 300,000 transactions and $3 billion in volume each.

When examining transaction volume against market sentiment:

Notably, ERC20-USDT transactions show no meaningful link to sentiment, underscoring its role as a neutral transactional layer rather than a speculative instrument.

⚠️ Note: These correlations are based on short-term data and should not be interpreted as causal relationships or used for direct trading decisions.

Concentration Declines Among Top Holders—but Still Highly Centralized

Despite growing usage, stablecoin ownership remains highly concentrated.

As of March 9:

On average, the top 100 wallets control 70.19% of each stablecoin’s total supply:

Even more striking: the top 5 addresses hold an average of 6.35% each, meaning just 8 wallets could control half the supply of any given stablecoin.

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Compared to 2018—when top holders averaged 12.75%—this represents a significant decentralization trend. However, two outliers skew the data:

Excluding these cases, true whale concentration may be lower—but still concerning from a decentralization standpoint.

Moreover, trading activity outside USDT remains heavily centralized:

This illustrates that most non-USDT stablecoins function primarily within closed exchange ecosystems.

New Trends: DeFi Wrappers and Chain-Specific Stablecoins

Beyond traditional fiat-backed tokens, new categories are emerging:

🔄 Wrapped Asset "Stablecoins"

Tokens like WETH, WBTC, HBTC, and imBTC are often called synthetic or wrapped assets. Though not pegged to fiat, they function similarly to stablecoins in DeFi by enabling ETH/BTC to interact with smart contracts.

These “pan-stablecoins” solve key interoperability challenges:

Their rise parallels DeFi growth—especially on Ethereum—where native assets can’t directly participate in complex financial applications.

⛓️ Chain-Specific Stablecoins

Public blockchains like Tron and Ontology have launched custom versions of existing stablecoins (e.g., TRC20-USDT, ONT-PAX). The goal is to boost DApp liquidity and user adoption within their ecosystems.

However, adoption remains limited compared to ERC20 equivalents. TRC20-USDT’s share has even declined recently—suggesting these chain-specific models haven’t yet achieved breakout momentum.

Frequently Asked Questions (FAQ)

Q: Why does USDT dominate despite trust concerns?
A: Despite past controversies, USDT offers unmatched liquidity across exchanges and chains. Its wide acceptance and deep trading pairs make it indispensable for traders and arbitrageurs.

Q: Is high net issuance bullish for crypto markets?
A: Not necessarily. While new issuance can indicate capital entering crypto via stablecoins, it doesn’t guarantee buying pressure on assets like Bitcoin or Ethereum—it depends on how users deploy those funds.

Q: Are DAI and other DeFi-native stablecoins gaining traction?
A: Yes—DAI’s lower holder concentration and strong ties to DeFi usage show growing organic demand. However, scale remains small compared to centralized options like USDT and USDC.

Q: Why are most non-USDT stablecoins traded on only one exchange?
A: Many are launched by exchanges (like BUSD by Binance) or niche projects with limited distribution goals. Their utility is often confined to specific platforms unless broader integration occurs.

Q: Can wrapped tokens replace traditional stablecoins?
A: Not fully—they serve different purposes. Wrapped assets unlock BTC/ETH utility in DeFi but don’t provide price stability like USD-pegged coins.

Q: Should investors worry about whale concentration?
A: Yes—high centralization poses risks such as sudden sell-offs or manipulation. However, increased multi-chain diversification and DeFi usage are gradually reducing systemic risk.

Final Thoughts

The stablecoin landscape remains anchored by USDT—but evolution is underway. Increased issuance since February signals renewed confidence, while growing DeFi integration opens new utility frontiers. Still, centralization persists in both holdings and trading venues.

As blockchain ecosystems mature and cross-chain solutions improve, expect further diversification in both supply mechanisms and use cases—from yield-bearing synthetic assets to truly decentralized alternatives.

👉 Stay ahead with real-time data on stablecoin flows and market movements.