WuBlockchain
Tether's USDT expanded by more than $5 billion over the past month, but USDC, USDe and PYUSD together shrank by roughly $4.2 billion — leaving net stablecoin growth at only around $0.9 billion, or about 0.3% for the month. Total stablecoin supply did cross the $300 billion mark, but the headline number masks a sharp slowdown in fresh issuance.
Why it matters
Inflows are concentrating inside a single issuer rather than expanding the stablecoin market as a whole. Ethena's USDe led the contraction, dropping 28% over the month and roughly 34% year-to-date as compressed perpetual funding rates eroded the synthetic dollar's yield advantage. Sky's USDS and World Liberty Financial's USD1 picked up marginal inflows, while PayPal's PYUSD fell 13% over the period.
Market impact
The pattern matters for two reasons. First, USDT's share of the stablecoin float keeps climbing at a moment when the broader market's net new dollar creation has effectively stalled — a single point of failure the rest of the field is not offsetting. Second, yield-bearing stables like USDe are de-rating with derivatives conditions: when perp funding normalises, the supply base will likely follow. Watch USDe's market cap and BTC perp funding rates as the next read on whether the contraction deepens or reverses.
Frequently asked questions
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How much did USDT grow in the past month?
Tether's USDT expanded by more than $5 billion over the past month, even as USDC, USDe and PYUSD together shrank by roughly $4.2 billion.
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What is total stablecoin supply now?
Total stablecoin supply crossed $300 billion, but net monthly growth was only around $0.9 billion — about 0.3% — as inflows concentrated in USDT rather than the broader market.
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Why is USDe supply falling?
Ethena's USDe dropped 28% over the month and roughly 34% year-to-date. Compressed perpetual funding rates have reduced the synthetic dollar's yield advantage, pulling capital out.
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Which stablecoins grew while others shrank?
Sky's USDS and World Liberty Financial's USD1 picked up marginal inflows. PYUSD fell 13% over the month, while USDC and USDe accounted for the bulk of the contraction.
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What is the concentration risk in stablecoins now?
USDT's share of the stablecoin float keeps climbing while net new dollar creation across the sector has effectively stalled — leaving a single issuer as the dominant point of issuance for new capital entering crypto.
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