Key takeaways
- Tether’s USDT supply increased by more than $5 billion, to approximately $189.7 billion.
- USDC, USDe, and PYUSD lost a combined $4.2 billion as stablecoin net growth stagnates at just 0.3%.
- Ethena’s USDe is down 34% year-to-date since October 2025, signaling structural pressure on synthetic dollars.
Tether consolidates its grip as rivals withdraw
According to the data, USDTLast month’s net growth amounts to approximately $900 million (0.3% of total supply), as almost every dollar entering the market is a Tether dollar replacing a repurchased position in USDC, USDe, or PYUSD.
USDTThe circulating supply now stands at approximately $189.7 billion, giving it almost 60% of the total. stable coin walk. When combined with USDC, the two incumbents represent approximately 93% of the entire category.
Tether’s monthly gain of over $5 billion does not appear to reflect new funds entering the market. stable coin sector, but rather a rotation of competing products towards perceived security and liquidity of USDT.
The sharpest pain is visible when it comes to Ethena, as the synthetic dollar protocol’s USDe is down 28% over the past month and is down about 34% year-to-date, with sustained outflows since October 2025. Paypal’s PYUSD and Circle’s USDC have also seen declines over the same window, but neither in the same severity as USDe.
The dynamic reflects two converging forces. First, the regulatory environment in the United States has tilted in favor of Tether’s positioning: on hold stable coin legislation, mainly the GENIUS lawwhich the Senate is working to finalize, has raised compliance questions for new algorithmic and synthetic instruments, pushing institutional users toward more established issuers. Second, widespread risk aversion in the market has historically pushed capital toward the most liquid sectors. stable coinwhat remains USDT by a wide margin.
Bitcoin.com News reported on the stable coin the market crossed $320 billion last month, a milestone at the time accompanied by a slight decline in Tether’s share of dominance. The latest data suggests that the decline has since reversed, with Tether reasserting its control even as total market growth stagnates.
For decentralized finance ( Challenge) protocols that rely on USDe and PYUSD as collateral or liquidity At various levels, the continued squeeze on these supplies is likely to have downstream effects on borrowing rates and yield opportunities in credit markets.
