Stablecoin supply falls $9.45B since May, reducing liquidity
Stablecoin supply declined $9.445 billion from May 8 to June 28, including $2.119 billion in the past seven days. USDT and USDC posted the largest drops since May 28.
On-chain analytics show the stablecoin sector contracted by $9.445 billion between May 8 and June 28, leaving total market capitalization at about $313.19 billion. In the seven days ending June 28, the sector recorded $2.119 billion in outflows.
Tether’s USDT and Circle’s USDC accounted for the largest declines since May 28. USDT’s market value stood at roughly $184.898 billion, about 59% of the sector, and fell by $3.79 billion since May 28. USDC decreased by $2.419 billion over the same period.
Other dollar-pegged tokens also saw reductions. Sky’s USDS declined by about $587 million. World Liberty Financial’s USD1 fell roughly $69 million, a 1.45% drop, and Ethena’s USDe declined just over $31 million, or about 0.69%. MakerDAO’s DAI rose by around $251 million, a 5.48% increase since May 28.
Tokenized U.S. Treasury balances fell from about $15.86 billion to $14.59 billion in June, a decline of 2.58% since May 28, according to on-chain real-world-asset metrics.
The reduction in stablecoin supply narrowed the pool of available liquidity for trading and market making. Common reasons for lower stablecoin balances include conversions back to bank deposits, transfers into centralized custody, and redemptions into other instruments.
How long the outflows will continue is unclear. Flows can reverse if on-chain demand or market sentiment changes.
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