The U.S. "GENIUS Act" ignites the stablecoin craze! In July, on-chain volume soared to a new high of $1.5 trillion.

In July, the U.S. "GENIUS Act" came into effect, bringing unprecedented regulatory clarity to the stablecoin industry. Driven by this favourable information, on-chain stablecoin volume soared to $1.5 trillion, setting a historical record. This phenomenon not only marks the acceleration of the compliance process in crypto finance but also indicates that the landscape of the stablecoin market is undergoing profound changes.

Stablecoin volume hits record, USDC's market dominance solidifies

According to Sentora data, the total on-chain transaction volume of stablecoins in July reached $1.5 trillion, a 19% increase compared to June, surpassing the previous high in August 2024. USDC topped the list with a transaction volume of $748 billion, accounting for nearly 50% of the market. USDT followed closely with $420 billion, and DAI ranked third with $261 billion. This wave of capital flow demonstrates strong demand from institutions and retail investors for mainstream stablecoins.

Bitcoin and Ethereum drive on-chain capital flow

In July, Bitcoin reached a historic high of $123,000, and the price of Ethereum also approached $4,000. The strong performance of mainstream assets has prompted investors to transfer profits into stablecoins like USDT and USDC for hedging, further boosting on-chain volume. This phenomenon highlights the key role of stablecoins as a hub of market liquidity.

The implementation of the GENIUS Act, regulatory clarity drives growth

On July 19, President Trump signed the GENIUS Act, establishing clear regulations for stablecoin and digital asset financial products, including reserve requirements and Federal Reserve oversight. This regulatory breakthrough has significantly boosted market confidence, attracting giants like JPMorgan and Meta to actively explore stablecoin cross-border payments and financial services. CryptoSlate data shows that the total market capitalization of stablecoins has risen to $278 billion, with the total market capitalization tracked by DefiLlama increasing by nearly $17 billion within a month.

Winners and Dark Horses: The Rise of Emerging Stablecoins

In addition to USDT and USDC, the stablecoin issued by Falcon Finance has become the biggest dark horse this month, with both market value and volume surging. Synthetic stablecoins like Ethena have also attracted capital favor. PayPal USD is growing rapidly, but its total market value remains below 1 billion USD. It is noteworthy that some stablecoins are closely associated with Trump-related enterprises, sparking discussions about the distribution of policy dividends.

Conclusion

The U.S. "GENIUS Act" ignited a surge in the stablecoin market, with on-chain trading volume reaching a new high of $1.5 trillion in July. Clear regulations, strong performance of mainstream assets, and the rise of new stablecoins have collectively driven the industry into a new phase of explosive growth. Investors should closely monitor policy trends and changes in market dynamics to seize new opportunities in crypto finance.