Stablecoin supply shrinks by US$9.4B in seven weeks

• The stablecoin market has contracted by approximately US$9.45 billion since May 8, reducing liquidity available for cryptocurrency markets.
• USDT and USDC recorded the largest outflows, while DAI was one of the few major stablecoins to expand its supply.
• Tokenised US Treasury assets also declined, indicating continued capital outflows from digital asset markets.

The stablecoin market has contracted by approximately US$9.45 billion since May 8, reducing the amount of capital available to support cryptocurrency trading as investors continue withdrawing funds from digital asset markets.

During the past seven days alone, stablecoin supply declined by approximately US$2.12 billion, with the largest outflows coming from Tether (USDT), Circle's USDC, USD1, USDe and PYUSD.

The total stablecoin market is now valued at approximately US$313.19 billion, with Tether (USDT) accounting for US$184.90 billion, representing about 59% of the sector's total market capitalisation.

Over the past month, USDT's circulating supply declined by approximately US$3.79 billion, while USDC contracted by about US$2.42 billion and Sky's USDS fell by approximately US$587 million.

DAI was one of the few major stablecoins to expand during the period, increasing by approximately US$251 million, or 5.48%, since May 28.

The contraction extended beyond stablecoins, with tokenised US Treasury products declining from approximately US$15.86 billion to US$14.59 billion during June, representing a 2.58% decrease since May 28.

The simultaneous decline in stablecoin supply and tokenised Treasury assets suggests capital continues to move out of digital asset markets, reducing liquidity that could otherwise support cryptocurrency prices.