Analyzing the relationship between stablecoin growth and traditional bank deposits (2020-2025)
Total Stablecoin Supply
$284B
As of Q3 2025 (All-time high)
US Bank Deposits
$18.7T
As of Dec 2025 (FRED)
Stablecoin Growth (5Y)
+6,700%
From $4.2B in Jan 2020
Stablecoin/Deposits Ratio
1.52%
Up from 0.02% in 2020
Stablecoin Supply vs US Bank Deposits (2020-2025)
Stablecoin Supply (Billions USD)
Bank Deposits (Trillions USD)
Stablecoin Supply as % of US Bank Deposits
Measuring stablecoin penetration into traditional dollar liquidity
Key Insights
📈Stablecoin Explosion: Total stablecoin supply grew from $4.2B (Jan 2020) to $284B (Sep 2025), a 67x increase in just 5 years. USDT ($173B) and USDC ($76B) dominate with 88% market share.
📉2023 Deposit Flight: US bank deposits dropped from a peak of $18.2T (Apr 2022) to $17.3T (Apr 2023) — a $900B decline coinciding with Fed rate hikes and regional bank failures (SVB, Signature, First Republic).
🔄Correlation Pattern: During the 2022-2023 deposit flight, stablecoin market cap also declined (from $188B to $124B), suggesting shared market stress rather than direct substitution. However, stablecoin recovery has outpaced deposit recovery.
⚡Growing Alternative: Stablecoins now represent 1.5% of US bank deposits, up from 0.02% in 2020. While still small, the growth trajectory suggests increasing competition for dollar-denominated liquidity.
🏦Institutional Shift: USDC growth on Ethereum accelerated from $34.5B to $39.7B, indicating institutions favor chains with regulatory clarity. Circle's transparency and reserves disclosure attract risk-averse capital.