Stablecoin issuers have emerged as a dominant revenue force in the cryptocurrency industry, generating an estimated $8.5 billion in fees over the past year. This figure represents a 36.8% market share across major crypto sectors, nearly matching the combined fee output of Layer 1 blockchains and decentralized finance (DeFi) protocols.
According to recent data, Layer 1 blockchains brought in $5.0 billion (21.5%) in fees, while DeFi generated $3.6 billion (15.7%). Combined, these sectors total roughly $8.6 billion, almost identical to the revenue from stablecoin issuers alone. This comparison highlights a significant structural shift in crypto's business model.
The revenue model for stablecoins differs fundamentally from other sectors. While L1s and DeFi protocols depend heavily on speculative trading cycles and network activity, stablecoin issuers generate revenue primarily from the yield on their reserves, which are typically held in U.S. Treasuries and other short-term instruments. This creates a more consistent, macro-linked revenue stream that is less volatile than activity-driven fees.
Analysts note that stablecoins are no longer just transactional tools but have become a powerful financial pillar. Their growing economic weight is also evident in market capitalization comparisons. A late-2025 sector snapshot placed the aggregate stablecoin market cap in the high hundreds of billions, with one report from Amina Bank citing a total of $298 billion. This market cap is roughly comparable to the sum of selected Layer-1 blockchain market capitalization and total value locked (TVL) in DeFi at certain snapshots, though direct comparisons require careful methodology to avoid double-counting stablecoins already locked in DeFi pools.
Stablecoins underpin much of the on-chain activity, serving as the dominant quote and settlement asset across decentralized exchanges and money markets. Their presence concentrates liquidity and reduces basis risk. Data from Qubit Capital indicates that stablecoin inflows often serve as leading indicators for subsequent changes in DeFi TVL, demonstrating how dollar liquidity primes protocol growth.
