Stablecoin supply declines by $9.445 billion since May 8, with dry powder declining across crypto markets
Since May 8, 2026, the stablecoin sector has shrunk by $9.445 billion in 51 days. decline stable coin Market capitalization is widely viewed as: bearish It is an indicator because it gives more signals than a trader who stays on the sidelines. It suggests that capital, or “dry powder”, is actively flowing out of the market.
The market recorded $2.119 billion in outflows over the past week, with the decline spreading across the country, according to seven days of data. $USDT, $USDC, $USD1, $USDeAccording to statistics from defillama.com, PYUSD.
of stable coin The sector currently stands at $313,191 million; $USDT The market capitalization reached $184,898 million, accounting for 59.04% share of the total market.
tether’s $USDT And the circle $USDC Accounting for the majority of recent leaks
For the most part stable coin A breach occurred using Tether in the last 30 days ( $USDT) has shrunk by $3.79 billion since May 28. of the circle $USDC Sky’s USDS recorded a decrease of $587 million, while it recorded a decrease of $2,419 million. Meanwhile, Sky’s DAI bucked the trend, registering an increase of $251 million, and an increase of 5.48% since May 28th.
Approximately $69 million was leaked from World Liberty Financial since May 28. $USD1reducing its supply by 1.45% while Ethena’s $USDe It decreased by 0.69%, or just over $31 million, over the same period. As a total stable coin Once supply contracts are signed, the pool of purchasing power that can absorb selling pressure also diminishes, and this stablecoin decline has paralleled a decline in the broader crypto market.
Treasury-backed tokens continue to decline
According to the rwa.xyz indicator, a similar pattern is emerging in the real world assets (RWA) sector, particularly among tokens backed by US Treasuries. During June, the tokenized US Treasury market declined from $15.86 billion to the current $14.59 billion, giving up 2.58% of its total value since May 28th. Taken together, the decline in stablecoins and tokenized Treasury products across the board indicates a broader rotation of capital and a meaningful exit from the market.
No one knows how long that trend will continue.
