Stablecoin Market Shed $26 Billion Since May Peak as Tokenized Treasuries Also Retreat
Key Takeaways
- •Total stablecoin capitalization has fallen 5.36% over the past 30 days, leaving the market at roughly 91.59% of its May valuation.
- •Tether's USDT and Circle's USDC together represent $244.423 billion in circulating supply, with monthly declines of 4.7% and 4.9% respectively.
- •Smaller issuers saw steeper contractions, including Aave's GHO down 61.47% and USD.AI down 54.56%, while Ripple's RLUSD grew 15.12% and Open USD advanced 18.52%.
- •Glassnode estimates $17 billion left the stablecoin sector in the last 30 days, part of a $26.15 billion outflow since mid-May.
- •Tokenized U.S. Treasury funds also declined 5.36% over 30 days to $13.91 billion, with BlackRock's BUIDL down 24.39% while Franklin Templeton's BENJI expanded 88.38%.
The stablecoin sector is undergoing its steepest contraction since 2022. According to Defillama statistics reviewed on Saturday morning, total stablecoin capitalization has fallen 5.36% over the past 30 days, 1.52% over seven days, and 0.27% in the preceding 24 hours. The market now retains roughly 91.59% of its May valuation, underscoring a persistent retreat from its earlier high.
Tether's USDT remains the dominant stablecoin, with $175.222 billion in circulation this weekend despite a 4.7% decline over 30 days. Circle's USDC follows at $69.201 billion after a 4.9% monthly contraction. Together, the two heavyweights account for $244.423 billion in circulating stablecoin supply. Because marketwide totals aggregate every issuer, the supply trajectories of these two heavyweights weigh heavily on the headline percentages DefiLlama reports.
Smaller Issuers Hit Harder, Though Some Buck the Trend
Several competitors have suffered considerably sharper reductions. Sky Dollar (USDS) declined 22.04%, while World Liberty Financial's USD1 shed 24.79%. Aave's dollar-pegged GHO recorded a particularly severe 61.47% contraction, and USD.AI retreated 54.56%. Steeper percentage moves of this kind tend to surface among smaller issuers, where a given absolute outflow represents a larger share of a smaller circulating supply.
The downturn has not been universal, however. Ripple's RLUSD expanded 15.12%, Ethena's USDe gained 3.04%, and Open USD (OUSD) advanced 18.52%. Among smaller offerings, M by M0 recorded a 26.02% increase.
While $26.15 billion has left the stablecoin sector since mid-May, analytics provider Glassnode estimates that $17 billion was erased over the last 30 days alone.
Tokenized U.S. Treasury Funds Join the Retreat
The contraction extends into tokenized government securities — financial products that wrap U.S. Treasury holdings into blockchain tokens, extending exposure to government debt yields on-chain. According to RWA.xyz figures collected by Bitcoin.com News on Saturday morning, tokenized U.S. Treasury funds collectively represent $13.91 billion in distributed value, reflecting a 5.36% decline over the last 30 days. The category spans 123 distinct assets and 86,320 holders, with its ten largest products accounting for approximately 85.4% of distributed value.
Several prominent institutional offerings experienced substantial reductions. BlackRock's BUIDL fund declined 24.39% over 30 days to $1.654 billion, while Circle's USYC contracted 15.46% to $2.016 billion. WisdomTree's WTGXX recorded an even steeper 36.43% decline, and Invesco's USTB shed 26.63%. Conversely, Franklin Templeton's BENJI expanded 88.38%, Ondo's SHVon climbed 43.84%, and JPMorgan's JLTXX gained 4.03%.
What Shrinking Stablecoin Supply Means for Crypto Liquidity
Stablecoins serve as trading capital, settlement instruments, and collateral throughout cryptocurrency markets. A declining supply can signal redemptions, diminished speculative demand, and reduced purchasing power available for bitcoin and alternative digital assets. Tokenized Treasuries perform overlapping functions but generally distribute investment yields, making their simultaneous contraction particularly noteworthy.
Falling capitalization does not necessarily establish widespread capital flight, however. Institutional reallocations, transfers between issuers, and changing collateral preferences can all influence supply without corresponding withdrawals from the cryptocurrency ecosystem.
Even so, with both categories retreating simultaneously, the availability of blockchain-based dollar liquidity warrants closer attention. The figures alone cannot establish where redeemed capital ultimately went, leaving an important distinction between shrinking token supplies and a definitive exodus of money from cryptocurrency markets. Successive readings from DefiLlama, Glassnode, and RWA.xyz will show whether the pullback deepens or levels off, and whether the issuers moving against the trend sustain their trajectories.
The original report was published by Bitcoin.com News: 2022 Vibes: $26 Billion Vanishes From Stablecoin Market Since May Peak.
