The State of Stablecoin Liquidity

Axelar - The State of Stablecoin Liquidity: Distribution, Fragmentation, and Dominance in 2025

Stablecoins now exceed $300 billion in circulation, but liquidity is far from uniform. Deep pools form on some chains, while others remain thin, split across issuers and compliance regimes.

As new regulations take shape, fragmentation has become both risk and opportunity. Issuers and institutions are adapting: Circle, Paxos, and Tether.io target specific jurisdictions, while decentralized challengers like Sky and Ethena redefine collateralization and access.

This new Axelar Network report maps the forces driving these trends to see how stablecoins are reshaping onchain finance, and where liquidity will flow next.

Author

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