IMF Raises Red Flag as Stablecoins Overtake Bitcoin and Ethereum in Global Flows

The IMF has issued one of its strongest signals yet that the global crypto landscape is shifting. In its latest departmental paper, the fund reports that stablecoins have exploded past the 300 billion dollar mark, now accounting for roughly 7 percent of the entire crypto market.

USDT and USDC dominate the sector with more than 90 percent market share. On-chain data shows USDT at 185.5 billion dollars in circulation and USDC at 77.6 billion dollars, reflecting unprecedented demand for digital dollars.

But the biggest story is the rise in stablecoin flows. For the first time, cross-border stablecoin transactions have officially surpassed Bitcoin and Ethereum. According to the IMF, trading volume for USDT and USDC hit 23 trillion dollars in 2024, a stunning 90 percent year-over-year surge. This marks a structural shift where stablecoins are no longer just settlement tools but the core rails of global crypto liquidity.

Circulation for the two largest stablecoins has more than tripled in the past two years, accelerating their role in global payments and remittances. However, the IMF warns that their rapid adoption could complicate monetary policy, especially in emerging markets.

Asia now leads global stablecoin usage, while Africa, Latin America, and the Middle East are seeing the fastest growth relative to GDP. The pattern is clear: in economies dealing with inflation or capital controls, consumers increasingly choose digital dollars over local currencies.

Macro analysts at EndGame describe this shift not as hype, but as the early stages of a new global monetary structure. In their words, stablecoins have become “the digital edge of the dollar system.”

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