Stablecoins pegged to the euro, Japanese yen, or other world currencies have been growing in recent years, but their significance in the cryptocurrency market remains minimal. New data shows that the dominant position of the US dollar in the stablecoin sector is not being significantly shaken so far.
According to data from the analytics platform Artemis, the total supply of stablecoins pegged to currencies other than the US dollar increased from approximately $261 million in May 2021 to around $771 million in April 2026. Nevertheless, their market share has even slightly declined—from 0.26 percent to the current 0.24 percent. Stablecoins backed by the US dollar thus still dominate 99.76 percent of the market.
Stablecoins are cryptocurrencies pegged to the value of traditional assets, most commonly the US dollar. In the cryptocurrency ecosystem, they serve as a medium for trading, money transfers, or storing value without the significant price fluctuations typical of, for example, Bitcoin.
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Higher Interest Rates Strengthen the Dollar’s Position
While the share of the US dollar is gradually weakening in some areas of the traditional financial system, the situation in the blockchain environment is the opposite. The dollar is actually further strengthening its dominance here. According to the International Monetary Fund, the US dollar accounts for approximately 57 percent of global foreign exchange reserves and participates in 89 percent of global currency trades. In the area of stablecoins, however, its dominance is even more pronounced.
According to analysts, one of the main reasons is the connection of dollar stablecoins with US Treasury bonds. Stablecoin issuers often hold reserves in short-term US government bonds, which generate attractive yields in the current higher interest rate environment. This increases the profitability of dollar stablecoins while providing issuers with more resources for infrastructure development, marketing, and partnerships.
The advantage of the US market is also evident in the area of tokenized assets. According to data from the RWA.xyz platform, the value of tokenized US Treasury debt reaches approximately $15.4 billion. By comparison—tokenized government debt of other countries combined amounts to about $1.4 billion. The market for tokenized US bonds is thus roughly eleven times larger than all other government bond markets on blockchain combined.
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Dominance Reinforces Itself
According to John Turner from Coinbase, liquidity also played a key role. At the Consensus conference in Hong Kong, he stated that the dominance of dollar stablecoins began to solidify in the early stages of the market. “If liquidity existed, trading volume followed,” Turner described the mechanism that, according to him, created a self-reinforcing effect for the growth of dollar stablecoins.
Higher liquidity, according to experts, attracts additional users, new use cases, and capital. This subsequently creates an environment in which dollar stablecoins have significantly better conditions for further growth than their competitors pegged to other currencies.
Most Currencies Lack Global Significance
Analysts also point to another factor—most world currencies do not have significant international use outside their domestic markets. The International Monetary Fund records approximately 180 currencies, but only a few are globally significant and widely traded, such as the dollar, euro, British pound, Swiss franc, or Japanese yen.
According to experts, stablecoins inherit the international significance of their “parent” currency, which significantly limits the potential of most non-US stablecoins. Although companies and blockchain projects continue to experiment with stablecoins pegged to the euro, yen, or other currencies, current data shows that market interest in alternatives to dollar stablecoins remains very low for now.
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