Stablecoin Glossary

A cryptocurrency designed to maintain a stable value relative to a reference asset, typically the US dollar. Most stablecoins are backed 1:1 by reserves of fiat currency, treasury bills, or other assets held by the issuer. Major stablecoins include USDT (Tether), USDC (Circle), and USDS (Sky). Stablecoins enable dollar-denominated transactions on blockchain networks without the price volatility of assets like Bitcoin or Ethereum.

An informal term for US dollar value represented on blockchain networks, primarily through stablecoins. Unlike a central bank digital currency (CBDC), digital dollars are issued by private companies. The term reflects that stablecoins function as dollars — they are pegged to the dollar, redeemable for dollars, and used as dollar substitutes in global commerce and finance.

A benchmark that measures total stablecoin market cap as a percentage of the US M2 money supply. It answers the question: what share of the dollar system now exists as stablecoins? As of early 2026, stablecoin dominance is approximately 1.4%, meaning about 1 in 72 US dollars exists as a stablecoin. Track it live on the DDD dashboard. See methodology for how it is calculated.

The total value of all units of a stablecoin currently in circulation. For a stablecoin pegged at $1, market cap is effectively equal to total supply. Stablecoin market cap is the numerator of the DDD ratio. Total stablecoin market cap across all issuers exceeded $230 billion by early 2026.

A measure of the total amount of money in circulation in the US economy. M2 includes cash, checking deposits, savings deposits, and short-term time deposits. Published monthly by the Federal Reserve via the FRED API, M2 is the denominator of the DDD ratio. US M2 is approximately $22.7 trillion. When M2 expands, the DDD percentage can fall even if stablecoin supply stays flat.

The target price a stablecoin aims to maintain, usually $1.00 for USD stablecoins. A stablecoin is said to "hold its peg" when it trades at or very near this target. A "depeg" occurs when the market price deviates significantly, which can happen due to reserve concerns, liquidity events, or market panic. Depegged stablecoins are still counted in DDD data if tracked by DeFi Llama.

The largest stablecoin by market cap, issued by Tether Limited. USDT holds approximately 58% of total stablecoin market share. It is available on multiple blockchains including Ethereum, Tron, Solana, and others. USDT is backed by reserves including US Treasury bills, cash, and other assets.

The second-largest stablecoin, issued by Circle. USDC holds approximately 24% of total stablecoin market share. It is regulated, fully backed by cash and short-term US treasuries, and available on Ethereum, Solana, Base, and other networks. Circle publishes monthly reserve attestation reports.

The upgraded stablecoin from Sky (formerly MakerDAO). Unlike USDT and USDC, USDS is crypto-collateralised — generated by users depositing collateral into smart contracts rather than being issued by a centralised company. USDS replaced DAI as Sky's primary stablecoin in 2024.

The percentage of total stablecoin supply controlled by a single issuer. USDT and USDC together account for over 80% of stablecoin market share. DDD tracks the issuer landscape on the main dashboard, showing how supply is distributed among issuers.

Minting is the creation of new stablecoin tokens — typically when fiat is deposited with an issuer. Burning is the reverse: tokens are redeemed and removed from circulation. Net mints (mints minus burns) directly change the stablecoin market cap and therefore affect the DDD ratio. Learn more in the FAQ.

Stablecoins exist on multiple blockchain networks. Ethereum and Tron host the largest share, followed by Solana, BSC, Arbitrum, and others. The distribution of stablecoins across chains reflects where demand for digital dollar settlement is strongest. See the chain breakdown on the DDD dashboard.

The growing use and acceptance of stablecoins across financial markets, payments, and commerce. Stablecoin adoption can be measured by market cap (total value in circulation), transaction volume, number of active wallets, or geographic reach. DDD measures adoption through the lens of market cap relative to M2 money supply — tracking what share of the dollar system has moved on-chain.

The increase in total stablecoin supply over time. Stablecoin supply grew from under $5 billion in 2019 to over $230 billion by 2026. Growth is driven by demand for digital dollar settlement, DeFi protocols, cross-border payments, and emerging market adoption. The historical chart on the DDD dashboard visualises this growth.