Stablecoins lose $7.7B despite record trading

• Stablecoin supply fell by $7.7 billion even as trading volume reached a record $1.79 trillion.
• Tether and USD Coin both recorded supply declines during the reporting period.
• The market remained active as traders continued moving funds despite lower stablecoin supply.

The stablecoin market lost $7.7 billion in supply over the past week, while trading volume climbed to a record $1.79 trillion.

The report said total stablecoin market value fell to about $266 billion after recent redemptions across major issuers.

Tether (CRYPTO:USDT) remained the largest stablecoin, while USD Coin (CRYPTO:USDC) also recorded a drop in circulating supply.

The report said strong trading activity continued even as fewer stablecoins remained in circulation.

Analysts said the supply decline may reflect investors redeeming stablecoins or moving money into other assets.

Stablecoins are widely used to move money between exchanges and buy digital assets without using traditional currencies.

The latest figures show stablecoin demand for trading remains strong, even as total supply moves lower.