Tether and USDC dominate the stablecoin market, with the rest of the list nowhere near their size. However, World Liberty's stablecoin, USD1 (CRYPTO:USD1), stands out for its rapid growth, having launched only in April 2025.
Stablecoins generally have some of the highest trading volumes, which makes sense given their role. However, there are exceptions, including Dai (DAI -0.00%) and Ethena USDe (USDE -0.01%). Both have low trading volumes relative to their market caps, potentially indicating that they're used more for yield farming (earning a passive return on crypto holdings) than for trading.
What sets each stablecoin apart
Stablecoins that track the U.S. dollar may seem the same at first glance, but each one has characteristics that set it apart.
1. Tether (USDT)
Launched in 2014, Tether was one of the first stablecoins. It's fiat-backed with reserves that include U.S. Treasuries, precious metals, and secured loans. Although Tether (the issuer) publishes quarterly attestations of its USDT reserves, no full audit by an accounting firm has yet been conducted, which has drawn criticism.
2. USDC
USDC is a fiat-backed U.S. dollar coin that prioritizes compliance and transparency. Its issuer, Circle Internet Group (CRCL +0.53%), went public in June 2025 and became one of the most popular cryptocurrency stocks. Circle focuses on integrating USDC into the traditional financial system. USDC can be used to settle transactions on Visa’s (V +0.39%) network, and some banks and brokers now allow USDC to facilitate deposits.
3. Dai (DAI)
Dai is a decentralized, crypto-collateralized stablecoin created by Sky (formerly MakerDAO) in 2017. It's most popular for use within decentralized finance (DeFi) protocols for lending, borrowing, and yield farming. Sky rebranded Dai as USDS (USDS +0.00%), and most exchanges converted DAI tokens to USDS in April 2026.
