Stablecoin Market at $323B as USDT Gains, Others Decline

The stablecoin market reached $323.112 billion, with Tether’s USDT accounting for 58.69% of the total and an estimated $189.6 billion in supply after about a $5 billion gain over the past month, according to Visa-on-chain analytics. The same on-chain data show the combined supply of USDC, Ethena’s USDe and PayPal USD fell by roughly $4.2 billion during the period.

The market has grown substantially since 2020, when total stablecoin value was about $5 billion, but growth has slowed in recent months as several large dollar-backed tokens lost supply and smaller projects absorbed some inflows.

Ethena’s USDe posted one of the largest declines, with supply down about 28% over the past month and nearly 34% since the start of the year. PayPal USD’s supply fell about 13% during the month despite continued backing from PayPal. USDC was among the larger stablecoins that also saw supply declines over the recent period.

Some smaller dollar-linked projects recorded inflows. Users seeking alternative yield opportunities drove moderate gains into USDS, and USD1 increased supply as interest rose in politically connected digital assets and other dollar-backed tokens.

Regulatory and market discussions coincided with the supply changes. On May 14, the Senate Banking Committee advanced the CLARITY Act in a markup vote of 15 to 9; the bill aims to clarify the regulatory framework for digital assets, including stablecoins. Debate over yield-bearing stablecoins has drawn attention from banking circles. JPMorgan Chase CFO Jeremy Barnum cautioned about risks of permitting stablecoins to provide yield.

Visa-on-chain analytics show a mixed recent picture: USDT’s share has risen while several large competitors have lost supply and niche projects have taken some outflows.