Amid the crypto market’s decline over the past two weeks, the stablecoin sector has seen significant growth, with its total capitalization increasing by $4.23 billion since March 1. This shows that stablecoins are becoming a more important part of the digital asset ecosystem, providing stability during volatile times.

Stablecoins Lead the Market with $228.553 Billion

Currently, the total stablecoin market capitalization stands at $228.553 billion, with Tether (USDT) dominating. USDT holds $143.74 billion, accounting for 62.89% of the entire stablecoin market. Of the total cryptocurrency market capitalization of $2.74 trillion, stablecoins now account for 8.34%, with USDT alone accounting for 5.25% of the entire digital asset space.

Circle's USDC continues to hold its second place with a capitalization of $58.371 billion, equivalent to 25.54% of the stablecoin market. USDC's stability shows its important role in the transaction and circulation of digital assets.

Growth and Decline Trends in Stablecoins

Over the past week, USDT's supply increased slightly by 0.44%, while USDC saw a stronger increase of 1.97%. In third place is Ethena's USDE with a capitalization of $5.458 billion, up 0.82% this week. Meanwhile, Sky's USDS grew strongly by 3.63% this week, reaching $4.811 billion.

However, not all stablecoins are growing. Sky's DAI recorded a 5.27% decrease to $4.185 billion. First Digital's FDUSD also lost 2.48% in a week to $1.796 billion. Usual's USD0 decreased by 5.72% to $978.18 million, falling below the $1 billion mark.

A notable bright spot in the stablecoin market is PayPal's PYUSD. Over the past week, PYUSD increased slightly by 0.33%, but over the month, it increased by a whopping 29.14%, adding $172.29 million to its supply. PYUSD's market capitalization now stands at $763.46 million, holding the eighth spot on the stablecoin rankings.

Other Notable Players

USDX Money’s USDX is currently ninth with a market cap of $625 million, down slightly by 0.05% on the week but still up 0.21% over the past 30 days. Meanwhile, Ondo’s USDY is at the bottom of the list with $592.73 million, down 0.45% on the week. However, in terms of monthly growth, USDY has posted an impressive 55.55% gain, surpassing PYUSD’s gains.

Stablecoins: Stabilizers Amid Volatility

The rise of stablecoins amid the crypto market downturn shows their growing importance. Leading stablecoins like USDT continue to dominate, while new entrants are bringing competition and innovation. This creates an important balance—ensuring stability for users while opening up lucrative opportunities for investors.

With the significant rise of digital dollars in the digital asset space, stablecoins are reshaping how the market reacts to volatility. This could be a sign that stablecoins will continue to play a central role in the cryptocurrency ecosystem in the future.