Stablecoins saw a record-breaking quarter with $45.6-$46.0 billion in net creations in Q3, a 324% increase from Q2. The total stablecoin supply is now $290-$310 billion, supporting DeFi and cross-exchange settlement. USDT led with $19.6 billion, followed by USDC with $12.3 billion and USDe with $9 billion in creations.

Most of Q3’s growth was concentrated in USDT, USDC, and USDe stablecoins. PayPal’s PYUSD and Sky’s USDS also saw inflows. USDC is closing the gap with USDT, while USDe’s growth velocity faces market shifts and regulatory developments.

Ethereum hosts over 50% of stablecoin supply, followed by Tron and Solana. Policy clarity, yield opportunities, infrastructure upgrades, and risk management contributed to stablecoin growth. USDT and USDC dominate the market, with USDe also growing quickly.

New stablecoin inflows were led by USDT and USDC, with USDe also experiencing rapid growth. However, the increase in supply hasn’t translated into increased usage, with active addresses and transfer volume decreasing. Liquidity remains thin across venues, and new designs like USDe face regulatory scrutiny.

Key signals to watch as the stablecoin market matures include tracking creations vs. redemptions, issuer spread, chain rotation, plumbing improvements, policy rollout, and onchain dollar stack. The $46 billion surge in stablecoins demonstrates demand, but the real test will be whether the supply continues to move, deepens liquidity, and withstands future shocks.

Read more at Cointelegraph: Who Led and What’s Next