The stablecoin sector contracted by $9.445 billion over a 51-day period since May 8, with $2.119 billion in outflows recorded in the past seven days alone, according to defillama.com statistics. The decline reflects capital actively flowing out of crypto markets, as stablecoin supply reductions signal diminished buying power available to absorb selling pressure. A declining stablecoin market capitalization is widely viewed as a bearish indicator because it represents more than traders remaining on the sidelines—it suggests dry powder is leaving the market entirely.
The stablecoin sector now stands at $313.191 billion in total market capitalization. Tether's USDT commands $184.898 billion of that total, giving it a 59.04% share of the entire stablecoin market. Seven-day data show outflows spread across USDT, USDC, USD1, USDe, and PYUSD during the past week.
![The top five stablecoins by market cap]()
The top five stablecoins by market cap and their seven-day percentage losses as of June 28.
USDT and USDC Account for Majority of Recent Outflows
Tether's USDT declined by $3.79 billion since May 28, representing the largest single-token contraction in the 30-day period. Circle's USDC recorded a $2.419 billion decline during the same timeframe, while Sky's USDS posted a $587 million reduction.
Sky's DAI moved in the opposite direction, posting a $251 million increase and climbing 5.48% since May 28. World Liberty Financial's USD1 saw $69 million flow out since May 28, trimming its supply by 1.45%. Ethena's USDe declined 0.69%, or just over $31 million, during the same period.
The bulk of stablecoin outflows occurred during the past 30 days. The latest drawdown unfolded alongside the broader crypto market decline.
Tokenized U.S. Treasury Market Declines 2.58% Since May 28
The real-world asset sector, particularly tokens backed by U.S. Treasuries, followed a similar contraction pattern, according to rwa.xyz metrics. During June, the tokenized U.S. Treasuries market declined from $15.86 billion to $14.59 billion. Since May 28, it surrendered 2.58% of its total value.
The contraction across stablecoins and tokenized Treasury products points to a broader rotation of capital and a retreat from the market.
FAQ
What caused the $9.445 billion stablecoin sector contraction since May 8?
The stablecoin sector contracted by $9.445 billion over a 51-day period since May 8, with $2.119 billion in outflows recorded in the past seven days alone. The decline reflects capital actively flowing out of crypto markets, as declining stablecoin supply signals reduced buying power available to absorb selling pressure.
How did USDT and USDC perform since May 28?
Tether's USDT declined by $3.79 billion since May 28, while Circle's USDC recorded a $2.419 billion decline during the same period. The two tokens accounted for the majority of stablecoin outflows in the 30-day timeframe, according to defillama.com statistics.
What happened to tokenized U.S. Treasury tokens since May 28?
The tokenized U.S. Treasuries market declined 2.58% since May 28, dropping from $15.86 billion to $14.59 billion, according to rwa.xyz metrics. The contraction paralleled the broader stablecoin sector decline during the same period.
