The global total stablecoin supply has hit the $300 billion mark, with Tether’s USDT alone adding $5 billion to the figure. Meanwhile, competing stablecoins like USDC and USDe lost a total of $4.2 billion in market share.
Stablecoins surge to $300B but monthly growth slows
The total stablecoin supply has shot past the $300 billion figure, with USDT doing the bulk of the work as it saw a growth to the tune of $5 billion. However, the overall monthly growth showed a sharp slowdown, at just 0.3 percent.
Overall, the stablecoin market added only about $0.9 billion in net supply. The majority of the gains were concentrated in USDT, leaving little for other competing stablecoins like USDC, USDe, and PYUSD.
The significant increase of $5 billion in USDT’s market share was enough to offset the loss recorded among other stablecoins, resulting in a total net growth of $0.9B. As a result, even though the overall stablecoin market has risen to $300 billion, it can’t exactly be dubbed as growth.
Rather, what the stablecoin market observed over the past month was concentration in one player over others. Notably, Ethena’s USDe stablecoin recorded a total loss in supply of more than 28 percent.
On a year-to-date (YTD) basis, USDe has lost close to 34 percent of its supply. Analysts opine that the decline in the stablecoin was primarily due to compressed perpetual futures funding rates.
Similarly, PYUSD’s supply tumbled by 13 percent during the past month. While USDC also lost some of its supply, the data doesn’t give a clear breakdown of the reduction experienced by the stablecoin.
To explain, lower funding rates can lead to reduced yields tied to passive income strategies. Consequently, the demand for yield-based stablecoin products also suffers, which is evident in the form of reduced supply of USDe and PYUSD stablecoins.
Stablecoin adoption on the up
Regardless of the tepid monthly growth in stablecoins over the past month, the long-term trend remains overwhelmingly bullish. On Tuesday, Japan recognized stablecoins as legal electronic payments.
On May 14, a report by McKinsey posited that stablecoin payments flows hit a staggering $390B in 2025.
Financial watchdogs around the world are noting note of rapid stablecoin adoption too, as the Bank of England announced on Wednesday that it will integrate the digital asset into domestic systems.