The State of Stablecoin Liquidity: Distribution, Fragmentation, and Dominance in 2025
Table of Contents
Stablecoins anchor the onchain economy, but liquidity is far from uniform. While total stablecoin supply now exceeds $300 billion, that liquidity is fragmented across chains, issuers, and compliance regimes. The result: deep pools in some ecosystems, thin markets in others, and a complex map of stablecoin development for different markets and use cases.
In this new Axelar Knowledge Center report, we examine the state of stablecoin liquidity in 2025: where it lives, how it’s distributed, and who’s driving its growth. Get insights on:
- Why Circle, Paxos, and Tether are targeting specific jurisdictions and payment partners to leverage dollar dominance.
- How decentralized issuers like Sky and Ethena are redrawing the lines of issuance and collateralization.
- How Tether’s issuance on Tron shapes liquidity in emerging markets, and the regulatory tensions it creates.
- Why fragmentation is both risk and opportunity as institutions seek compliant access to deep liquidity wherever it resides.
As onchain investment accelerates, broad access to stablecoin liquidity will drive returns and innovation. Axelar solutions connect these isolated liquidity centers, enabling issuers, traders and institutions to operate across any chain, wherever stablecoins flow.
Complete the form below to download the full report to see the data, distribution, and insights driving the next phase of onchain liquidity.
