Dollar Dominance Persists Despite Non-Dollar Stablecoin Growth

The growth of non-dollar stablecoins may seem impressive at first glance, but a closer look reveals that they are still largely irrelevant in the crypto market.

According to data from Artemis, the total supply of non-dollar stablecoins has increased from $261 million in May 2021 to approximately $771 million by April 2026. However, their market share has slipped slightly from 0.26% to 0.24%, leaving dollar-backed stablecoins controlling over 99.76% of the entire market.

The dominance of the US dollar on-chain is not just a historical phenomenon; it's also due to its structural advantages. Dollar-backed stablecoins are increasingly backed by U.S. government debt, which provides issuers with higher profitability, more capital for growth, deeper liquidity, and stronger market expansion.

Tokenized U.S. Treasuries now total around $15.4 billion, compared to only about $1.4 billion in non-U.S. government debt. This means the US Treasury market on-chain is roughly eleven times larger than the rest of the world combined.