USDC Stablecoin Gains Market Share as Regulation Boosts Sector: JPMorgan Report

JPMorgan analysts report the stablecoin market is outperforming broader cryptocurrency growth, fueled by U.S. regulatory clarity through the GENIUS Act. The $300 billion market has expanded 42% year-to-date, nearly double crypto's overall 21% growth. Stablecoins now represent 7.5% of the total $3.8 trillion crypto market capitalization. Circle's USDC has emerged as the primary beneficiary, with market capitalization surging from $61.5 billion to $73.7 billion in Q3 2025, capturing 25.5% market share. Meanwhile, Tether's dominance has declined from 67.5% to 60.4%. USDC's share of the combined USDT-USDC market has increased to 30% from 24% at year-start. The GENIUS Act implementation since July 18 has driven 19% market cap growth, demonstrating how regulatory frameworks accelerate adoption. Ethena's USDe has also gained traction, reaching $14.4 billion circulation and 5% market share. Analysts note market fragmentation may benefit liquidity providers like Bullish (BLSH) serving multiple stablecoin issuers.