Stablecoins rival DeFi TVL in 2025–26 settlement data

• Lyla Velez
• February 23, 2026
• News
• 0 Comments

Key Points:

• Size comparisons hinge on metrics like market cap, TVL, settlement volume.
• Stablecoins are most comparable to DeFi, not aggregated Layer-1 asset valuations.
• L1 market caps represent a different scale and construct than stablecoins.

The claim that “stables are almost as big as L1s and DeFi combined” hinges on how size is measured: market capitalization, total value locked (TVL), or settlement volume. Across common metrics, stablecoins look most comparable to DeFi, while the combined value of major Layer-1 (L1) assets sits in a different category.

Based on data from Jsquare Research, total stablecoin market capitalization exceeded about $271.4 billion as of August 2025. As reported by CoinLaw, DeFi TVL was roughly $130–140 billion in early 2026. That makes stablecoin market cap approximately twice DeFi TVL, but it is not directly comparable to the total market capitalization of L1 assets such as Ethereum (ETH). The figures illustrate stablecoins rival DeFi more than they do L1s when using like-for-like aggregation.

Why this matters now: liquidity, settlement, and user adoption

Stablecoins function as crypto’s cash layer, providing liquidity and near-instant settlement across chains like Ethereum and within centralized venues. This positioning supports trading, payments, and cross-border transfers, and it helps explain why supply growth can outpace DeFi TVL changes during risk-on and risk-off cycles.

Comparisons have spilled into headlines, but precision matters before drawing conclusions. As reported by Cointelegraph, “Stables are almost as big as L1s and DeFi combined.” The statement captures momentum, yet validating it requires aligning definitions across market cap, TVL, and asset valuations.

As reported by The Defiant, USDC’s market capitalization rose about 78% in 2024 to roughly $56 billion by February 2025, underscoring rapid institutional and retail uptake. Growth in top issuers such as Circle (USDC) often precedes upticks in on-chain activity and exchange settlement, reinforcing the cash-layer role.

At the time of this writing, market context remains mixed: Coinbase Global (COIN) closed near 171.35 on February 20 before trading around 165.66 in the overnight session, according to NasdaqGS and Blue Ocean ATS indications in delayed feeds. These observations are descriptive market color, not guidance.

Stablecoin market cap: scope, composition, and limitations

Composition is concentrated in U.S. dollar-pegged assets, led by Tether (USDT) and Circle’s USDC, which anchor liquidity across major networks including Ethereum (ETH). According to an academic paper on arXiv, Tether held about $98.5 billion in U.S. Treasury bills by Q1 2025, making it one of the largest non-sovereign holders and highlighting the growing intersection between stablecoins and traditional money markets.

However, comparing stablecoin market cap to DeFi TVL or to L1 market cap can be an apples-to-oranges exercise. Market cap measures circulating tokens at par value; TVL counts collateral locked in protocols; L1 market cap reflects the valuation of base-layer assets. Each responds differently to prices, issuance, and usage.

To substantiate claims about relative size, a clean comparison would require timestamped totals for stablecoin market cap, DeFi TVL, and aggregate L1 market caps using consistent methodologies. Until such synchronized snapshots are provided, the most supportable reading is that stablecoins currently rival DeFi on a market-cap-to-TVL basis, while L1 valuations remain a separate scale and construct.