Stablecoin market cap hits $240B as yields gain popularity

Stablecoins are gaining attention in 2025 as the market cap surpasses $240 billion.

This surge is driven by the growing demand for stablecoin yields, with major platforms like Ledger and PayPal entering the space.

In the first quarter of 2025, the stablecoin market has seen significant growth, indicating that investors are increasingly turning to stablecoin yields as a means of earning returns without the risks of capital volatility.

This trend comes as the broader altcoin market has yet to recover from previous losses.

Ledger announced on April 29, 2025, that it had integrated stablecoin yield features into its Ledger Live app, offering users up to 9.9% APY on popular stablecoins such as USDT (CRYPTO:USDT), USDC (CRYPTO:USDC), USDS (CRYPTO:USDS), and DAI (CRYPTO:DAI).

Meanwhile, PayPal introduced a 3.7% yield on its PYUSD (CRYPTO:PYUSD) stablecoin following the resolution of regulatory issues.

Data from DeFiLlama reveals that there are over 2,300 stablecoin pools across 469 protocols and 106 blockchains, reflecting a rapid increase in yield-seeking activity.

The top stablecoin pools offer APYs as high as 13.5%.

“Unpredictable policy shifts are creating ripple effects across markets. Even traditionally ‘safe’ stocks now experience wild swings over a single headline. Moving from stocks to yield-generating assets like stablecoin yields is a way to avoid directional risk,” GC Cooke, CEO of Brava, explained.

“As regulatory frameworks around stablecoins become clearer in the US, EU, Singapore, and the UAE, yield integrations will get easier. Stablecoin wallets could evolve into personal finance hubs, removing the need for traditional banks,” Chuk, a builder at Paxos, noted.

However, analysts have raised concerns about the risks associated with these yields.

“Fewer than 10 stablecoins have over $1 billion market caps. Most stablecoins still have market caps below $100 million,” Wajahat Mughal noted.

“The opportunities are real, especially for those who know how to navigate smaller, emerging farms. But it’s important to understand what you’re actually farming: Not just stable yield, but also ecosystem growth and early stage incentives,” Choze from Amagi highlighted, discussing the risks posed by low TVLs and ecosystem token rewards.

Investors are advised to understand the long-term potential of projects before diving into high-yield opportunities.

According to analysts, the trend toward stablecoin yields marks the beginning of a “stablecoin season” in 2025, but caution is advised when entering these yield opportunities.