Article Details

MetaMask’s mUSD Sees 4x Growth in First Week After Launch

TL;DR

• Growth surge: MetaMask’s mUSD supply expanded from $15 million at launch to $65 million within a single week, marking a fourfold increase that highlights strong user demand for new stablecoin options.
• Chain strategy: The majority of mUSD, about 88.2%, is circulating on Linea, while 11.8% remains on Ethereum, showing MetaMask’s deliberate push to strengthen adoption on its Layer 2 network.
• Market context: Overall stablecoin supply reached $279.8 billion, with USDT leading at $172.3 billion, as regulation and new entrants intensify competition across the sector.
  

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MetaMask’s new stablecoin, mUSD, has surged in adoption since its debut, reaching a circulating supply of $65 million just one week after launch. The rapid growth highlights both strong demand for dollar-pegged assets and MetaMask’s ability to leverage its established wallet ecosystem to capture market share in the increasingly competitive stablecoin sector.

Rapid Supply Expansion

According to MetaMask, mUSD officially went live last Monday and quickly expanded from an initial $15 million supply to $65 million by early Monday morning. The fourfold increase underscores the appetite for stablecoins that are backed 1:1 by high-quality, liquid dollar-equivalent assets. The swift uptake also reflects MetaMask’s broad user base, which has long relied on the wallet for decentralized finance activity.

Deployment Across Chains

Data compiled by Seoul Data Labs on Dune Analytics shows that most of the mUSD supply has been deployed on Linea, accounting for 88.2% of circulation, while Ethereum hosts the remaining 11.8%. This distribution suggests that MetaMask is strategically positioning mUSD to strengthen adoption on Linea, its own Layer 2 network, while still maintaining a foothold on Ethereum. The dual-chain presence could provide flexibility for users seeking efficient transactions.

Issuance and Backing

MetaMask revealed that mUSD is issued through Bridge, Stripe’s stablecoin platform, and minted using M0’s decentralized infrastructure. The company emphasized that the token is fully backed by dollar-equivalent assets designed to be both high-quality and highly liquid. This assurance is critical in a market where transparency and collateral quality have become defining factors for stablecoin credibility.

Broader Stablecoin Context

The launch of mUSD comes at a time when stablecoins are drawing heightened attention from regulators and industry players alike. As of Sunday, the total supply of U.S. dollar-pegged stablecoins reached $279.8 billion, led by USDT with $172.3 billion in circulation. The U.S. GENIUS Act, passed in July, has further intensified focus on compliance and oversight.

Meanwhile, other firms such as Kaia and LINE NEXT are preparing to launch stablecoin-focused applications, signaling a competitive landscape where MetaMask’s early momentum with mUSD could prove significant.