Changpeng ‘CZ’ Zhao: There are more stablecoin launches than altcoins

Crypto projects have pivoted from issuing altcoins to expanding the supply of various types of stablecoins. The overall stablecoin supply expanded above $230B, only partially due to the increased supply of the top 5 stablecoins. 

The crypto world may be shifting from an altcoin season to a stablecoin season. The supply of stablecoins increased to over $230B, making new highs almost weekly. The expansion is only partially due to supply inflows for Tether (USDT) and Circle’s USDC. 

Binance’s founder Changpeng ‘CZ’ Zhao noted that lately, there are more stablecoin launches than altcoin launches. Even more startups are picking a model with a synthetic or asset-backed stablecoin, hoping to build their own liquidity. 

I see more stablecoin startups than alts. 😂 https://t.co/fejuQixWqJ

— CZ 🔶 BNB (@cz_binance) March 21, 2025

The exact supply of both leading and minor stablecoins varies based on including the latest launches. The total valuation is estimated between $229.4B and $236B, of which over $200B is carried by USDT and USDC. Binance’s ecosystem also uses FDUSD, a centrally controlled stablecoin, which is used to inject liquidity into several leading pairs on the centralize exchange.

Stablecoins have split into three tiers – the market leaders USDT and USDC, large-scale stablecoins like DAI and USDe linked to DeFi protocols, and dozens of new assets linked to projects with still relatively low liquidity. A stablecoin season can further increase the usage of existing assets, and the attempts to create new stablecoins with multiple use cases.

Is a stablecoin season coming?

The crypto market is already overwhelmed by millions of tokens and altcoins, including memes. Most of those assets can easily erase 90% of their value within hours or even minutes. New projects have reoriented to creating various stablecoins, mostly by copying the models of larger projects. 

Based on Artemis data, there are already 42 minor stablecoin projects, which hold $6.4B in value. 

The wider list of stablecoin counts up to 300 assets, of which some have liquidity in the hundreds or thousands of dollars. Most of the stablecoin market is dollarized, though precious metals and other currencies like the Euro, GBP or RMB. 

The proliferation of new stablecoins has set up expectations of an eventual ‘stablecoin season’, attempting to offer versions of DeFi activities and possibly passive income. 

However, not all stablecoins are made equal. Currently, around $10.9B in value is locked in crypto over-collateralized coins, which pose a risk if the crypto market shifts to a lower range. 

Algorithmic stablecoins, the riskiest category, have a reported supply on Ethereum of only $800M. This report excludes Ethena’s USDe, which relies on algorithmic issues and burns. Due to the inherent risk of the crypto market, synthetic issuers only bring in a handful of projects, with a total value of $550M. 

The biggest fear for stablecoins is a repetition of the Terra (LUNA) situation, where each protocol used its own stablecoin to pump its asset, or inflated the supply based on an overvalued collateral. 

The other big problem with stablecoins is the fragmented liquidity. New stablecoins often build an isolated ecosystem, and it may be hard to trade out of the projects. Some stablecoins work as bonds, requiring the users to hold for years before receiving par value. Others only rely on a relatively illiquid decentralized pair, where traders can switch to another stablecoin. 

A stablecoin season may pose risk despite the nominal $1 price of the tokens. Stablecoin issuance is also a no guarantee on the usage of those assets, and their role in centralized or decentralized trading. 

Stablecoins expose crypto market to USD risk 

Stablecoins have essentially dollarized the crypto market, using the USD as the most intuitive unit of account. 

Recently, Chinese media mentioned the spillover effect, where US risk and debt could affect the crypto market. Chinese media called for a localization of the market, possibly using the RMB for stablecoins. 

RMB stablecoins have a reported supply of just $2.9M equivalent, showing limited printing similar to Euro-based stablecoins. USD-based stablecoins, especially TRON-based USDT, is one of the most widely used assets for the Asian market.

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