USDT Expansion Drives Limited Growth in $300B Stablecoin Sector

Total stablecoin supply has surpassed the $300 billion threshold, although recent growth has slowed noticeably.

Over the past month, performance across major stablecoins was mixed. Tether’s USDT added more than $5 billion in supply, but those gains were largely offset by declines in USDC, PYUSD, and USDe, which together contracted by roughly $4.2 billion. Consequently, net growth for the sector was minimal at about $0.9 billion, or around 0.3% for the month.

Meanwhile, inflows have become increasingly concentrated in USDT rather than indicating broad market expansion. Ethena’s USDe saw a 28% monthly decline and is down nearly 34% year-to-date, reflecting weaker yields tied to lower perp funding rates. At the same time, Sky’s USDS and World Liberty Financial’s USD1 attracted inflows, while PYUSD fell about 13% over the same period.

Source: The Block