2025's Stablecoin Shifts: Massive Outflows for Tether, Big Gains for USD0 and USDX

The stablecoin market, valued at approximately $206 billion according to Defillama.com, has seen some notable developments in the early days of 2025, including a considerable shift in the rankings and market movements.

Massive Outflows for Tether and Ethena in Early 2025

In the first few days of 2025, the stablecoin market has witnessed substantial outflows, with Tether (USDT) and Ethena’s USDE accounting for nearly $4 billion in losses. Tether, which once reached a market cap of over $141 billion, faced the most significant decline, shedding $3.79 billion. As of January 6, 2025, USDT’s market capitalization stands at $137.21 billion. Meanwhile, Ethena’s USDE, a yield-bearing stablecoin, has also seen a decrease, losing $190 million after its peak valuation of over $6 billion in December 2024. The current market cap of USDE is $5.81 billion.

Growth for USD0 and USDX

On the flip side, two other stablecoins—USD0 and USDX—are experiencing significant growth. USD0, which now ranks as the fifth-largest stablecoin, has expanded to a market cap of $1.864 billion, up from $1.62 billion at the end of December 2024. Issued by Usual Money, USD0 is fully backed by real-world assets, primarily ultra-short-maturity U.S. Treasury Bills. This stablecoin is actively traded on decentralized exchanges like Curve and Uniswap, contributing to its rise in value.

Similarly, USDX by Usdx Money has seen impressive growth, moving up the ranks to become the ninth-largest stablecoin with a market cap of $585.23 million. Just one month ago, USDX’s market cap was only $184 million, showing a dramatic increase of $70 million in the early weeks of 2025. The most popular platforms for trading USDX include Uniswap and Pancakeswap's Stableswap app.

Stablecoin Market Dynamics in 2025

The stablecoin sector has undergone significant reshuffling over the past year, with many players experiencing ups and downs. Despite Tether's $3.79 billion loss, its dominance remains unchallenged, with a market cap nearly three times that of its nearest competitor, USDC. Nonetheless, the contraction of USDT by such a large sum in such a short period marks one of the most significant reductions in the stablecoin's supply over the past year.

As we move through 2025, it will be interesting to see whether the momentum for newer stablecoins like USD0 and USDX continues, or if Tether can regain some of its lost ground.