Stablecoin Supply Crosses $300B but Net Growth Has Nearly Stalled — Tether Takes All the Gains

The total stablecoin market has crossed the $300 billion threshold, but the headline number flatters what is essentially a zero-sum reshuffling. Tether added over $5 billion in the past month, while USDC, USDe, and PYUSD shed a combined $4.2 billion — leaving net category growth at roughly $900 million, or just 0.3%. Every marginal stablecoin dollar entering the system right now is a USDT dollar replacing a redeemed rival.

The sharpest structural story sits with Ethena's USDe, down 28% in the past month and nearly 34% year-to-date. The synthetic dollar's yield model depends on positive perpetual funding rates, and that engine stalled after the October 10 deleveraging event compressed crypto perp funding. Overcollateralized alternatives have absorbed much of the rotation: Sky's USDS is up 48.9% year-to-date, and World Liberty Financial's USD1 has grown 33.7%.

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