Stablecoin Supply Surpasses $300 Billion as Tether Expands Market Share

The global stablecoin market has crossed the $300 billion mark, but recent figures suggest overall growth is slowing. While Tether continues to expand rapidly, several competing stablecoins are losing market share, showing a shift in investor preference rather than fresh capital entering the sector.

Stablecoin Market Growth Slows Despite $300 Billion Milestone

Stablecoin supply recently moved above $300 billion, yet monthly growth remained limited. Over the last month, Tether’s USDT added more than $5 billion in circulation, strengthening its lead across the market.

However, the rise in USDT has been offset by declines in competing stablecoins. The combined supply of USDC, USDe and PYUSD fell by roughly $4.2 billion during the same period. As a result, total market growth reached only around $900 million, equal to about 0.3%, signaling slower expansion.

Tether Gains While Rival Stablecoins Struggle

Market data shows investors are rotating funds into USDT while reducing exposure to other stablecoins. Ethena’s USDe recorded one of the largest declines, dropping 28% in the last month and nearly 34% since the start of the year.

USDe’s yield model, which depends on strong perpetual futures funding, weakened after market deleveraging in late 2025. Meanwhile, alternatives such as Sky’s USDS and World Liberty Financial’s USD1 attracted stronger demand.

New Stablecoin Entrants Face Tough Competition

Bank-issued and regulation-friendly stablecoins have also struggled to gain traction. Analysts suggest newer issuers may need stronger distribution, better yields or unique regulatory advantages to challenge Tether’s growing dominance.