Stablecoin deposits in DeFi protocols have reached $24 billion, up 560.8% over three years, according to Token Terminal. USDC holds the largest share, while the deposits make up only about 8% of the stablecoin market. A small recent net outflow is the figure to watch.
According to data released by Token Terminal on October 25, 2026, total stablecoin deposits into DeFi protocols have reached $24 billion. That figure is up 560.8% over the past three years.
The growth points to a shift in behavior: users are increasingly depositing their stablecoins into DeFi protocols to earn yield, rather than only holding them between trades.
USDC leads DeFi deposits
USDC holds a 38.2% share of DeFi deposits, which works out to around $9.2 billion. Tether's USDT comes second with approximately $4.9 billion, or 20.3% of the total.
USDe, a newer stablecoin, holds a 9.0% share at around $2.2 billion. Together, those three assets account for roughly two-thirds of all stablecoin deposits in DeFi, and Token Terminal's dataset covers 193 digital assets in total.
A small share of the stablecoin market
The $24 billion represents only about 8% of the entire stablecoin market, which is valued at approximately $298.4 billion.
Separate data from DeFiStar.io shows stablecoin lending pools with a total value locked of approximately $25.68 billion within a recent 24-hour period. However, net flows over the past month were slightly negative, with about $99.8 million in net withdrawals after accounting for interest.
Where the deposits sit
Major protocols holding these deposits include Aave V3, Morpho, Sky Protocol, and Spark. Depositors supply stablecoins, borrowers take loans against collateral, and the interest borrowers pay flows back to the suppliers.
Crypto Briefing notes that this is not risk-free: smart contract bugs, protocol failures, and stablecoin depegs are all hazards in DeFi. The outlet adds that the roughly $99.8 million net outflow is small compared to the totals, but if outflows persist or grow, it could indicate that depositors are finding better opportunities elsewhere or growing more cautious about protocol risk.
Source: Crypto Briefing
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