Stablecoin market cap drops $1.9B; Sky Dollar falls most

Stablecoin market capitalization fell $1.911 billion to $311.311 billion in the week ending July 5, 2026, according to DefiLlama. The sector declined 0.61% over seven days. Sky Dollar (USDS) recorded the largest weekly drop among the top 15, down 2.36% to $8.02 billion. Tether’s USDT fell 0.43%, losing $791 million and holding a $184.112 billion market cap and a 59.14% market share.

Circle’s USDC dropped 1.05% to $73.098 billion. Together, USDT and USDC account for more than 82% of the combined market cap of the top 15 stablecoins. USDT ranks third and USDC ranks fifth among all crypto assets by market capitalization.

Among the top 15, PayPal’s PYUSD posted the largest weekly gain, rising 4.25% to $2.836 billion. Ripple’s RLUSD increased 0.96% to $1.585 billion and USDD added 1.55% to $1.396 billion. MakerDAO’s DAI edged up 0.09% to $4.851 billion.

Mid-ranking tokens mostly moved lower. World Liberty Financial’s USD1 fell 1.77% to $4.61 billion, Global Dollar (USDG) declined 1.19% to $2.871 billion, and Ethena’s USDe slipped 0.49% to $4.439 billion. Circle’s USYC and BlackRock’s BUIDL showed minimal changes, down 0.06% and 0.21%, respectively.

Smaller stablecoins in the lower half of the top 15 showed mixed results. Ondo’s USDY was effectively unchanged at about $2.157 billion after a 0.01% dip. Falcon’s USDf rose 0.24% to $1.258 billion. United Stables (U) increased 0.81% to $1.023 billion, returning above the $1 billion threshold.

Stablecoin supply increases when issuers mint tokens in exchange for dollar reserves and decreases when tokens are redeemed and reserves are withdrawn. Market participants often use changes in stablecoin supply as a measure of how much capital is available in the crypto system for purchases of assets such as bitcoin and ether.

Several stablecoins offer exposure to short-term government debt. Tokenized money-market products including BlackRock’s BUIDL, Circle’s USYC and Ondo’s USDY pass along yields from underlying Treasury holdings and serve as alternatives to holding cash outside the crypto system.

Because Tether holds a majority share of the stablecoin market, small percentage changes in USDT translate into large absolute shifts in total stablecoin capitalization. Market participants will be watching whether PYUSD’s inflows continue and whether Sky Dollar’s decline accelerates or stabilizes in coming weeks.