US GENIUS Act sparks stablecoin boom with record $1.5 trillion transaction volume in July

The total on-chain stablecoin transaction volume surged to a new all-time high of $1.5 trillion in July, marking a significant milestone in the sector.

According to Sentora’s (formerly IntoTheBlock) data, this figure represents a sharp increase from the $1.26 trillion processed in June and surpasses the previous high seen in August 2024, when volumes topped $1.4 trillion.

Chart Showing Stablecoins On-chain Volume From 2018 (Source: Sentora)

Meanwhile, a closer look at the July numbers revealed that Circle’s USDC dominated the stablecoin market, accounting for nearly 50% of the total volume. USDC transactions reached approximately $748 billion in July.

Meanwhile, Tether’s USDT, the largest stablecoin by circulating supply, followed with a volume of $420 billion. The decentralized DAI stablecoin secured the third spot with $261 billion in transactions.

Why stablecoin volume rose in July

The remarkable increase in stablecoins’ on-chain volume can be attributed to several factors, including Bitcoin and Ethereum’s record performances in July.

Last month, Bitcoin price rose to a new all-time high of over $123,000 while ETH’s price also approached the $4000 threshold.

The price performance of these assets sparked significant on-chain activity from investors, who invested their profits in non-volatile digital assets like USDT and USDC.

In addition, the stablecoin industry saw the approval of its first major bill in the US, which helped clear the regulatory uncertainty in the sector.

The GENIUS Act, signed into law on July 19, established clear guidelines for stablecoins and digital asset-backed financial products. The new regulations include reserve requirements and oversight by the Federal Reserve, which are likely to foster greater trust and stability in the sector.

As a result, prominent financial institutions like JPMorgan and other top global companies like Meta have been exploring the use of stablecoins for cross-border transactions and other financial services, which further legitimizes the market.

With this clearer regulatory backdrop and surging adoption, stablecoin market capitalization has climbed past $278 billion, according to CryptoSlate’s data.

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