Stablecoin market cap drops US$1.9B

• The total stablecoin market capitalisation fell US$1.911 billion, or 0.61%, to US$311.311 billion over the past week.
• Tether's USDT retained a 59.14% market share, while PayPal's PYUSD recorded the strongest weekly growth among the top 15 stablecoins.
• The latest data suggests stablecoin supply remains broadly stable despite modest outflows, with newer yield-bearing tokens continuing to compete for capital.

The total stablecoin market capitalisation declined by US$1.911 billion to US$311.311 billion over the past seven days, with Tether (CRYPTO:USDT) maintaining a 59.14% market share despite a 0.43% weekly decline.

The pullback was driven by modest contractions across several of the largest stablecoins, including Circle USD Coin (CRYPTO:USDC), which fell 1.05% to US$73.098 billion, while the overall market remained within the US$300 billion to US$310 billion range seen in recent months.

PayPal USD (CRYPTO:PYUSD) recorded the strongest performance among the top 15 stablecoins, rising 4.25% to a market capitalisation of US$2.836 billion, while Ripple USD (CRYPTO:RLUSD) gained 0.96% to US$1.585 billion and USDD (CRYPTO:USDD) increased 1.55% to US$1.396 billion.

Sky Dollar (CRYPTO:USDS) posted the largest weekly decline, falling 2.36% to US$8.02 billion, while World Liberty Financial USD1 (CRYPTO:USD1) dropped 1.77%, Global Dollar declined 1.19%, and Ethena USDe (CRYPTO:USDE) slipped 0.49%.

Stablecoin supply expands when issuers mint tokens against new deposits and contracts when tokens are redeemed, making changes in total supply a commonly used indicator of capital entering or leaving the cryptocurrency market.

Newer yield-bearing products, including BlackRock BUIDL, Circle USYC and Ondo USDY, continue to compete with traditional trading stablecoins by offering exposure to short-term government debt while remaining on blockchain networks.

Tether and USDC together account for more than 82% of the top 15 stablecoin market capitalisation, leaving smaller issuers competing for a relatively small share of the market despite recent gains from tokens such as PYUSD and RLUSD.