Stablecoin capitalization declined $17 billion, or 6%, from April's $280 billion to $263 billion, its lowest level in over a year. Binance's 90-day average stablecoin capitalization fell 20%
Stablecoin market capitalization has fallen to its lowest level in over a year, analyst Darkfost reported. Total supply declined $17 billion since April, while Binance recorded a sharper contraction after a platform hack. Historical data, however, shows USDT and USDC remain the largest stablecoin pools alongside Bitcoin’s long-term price movements.
Darkfost said total stablecoin capitalization fell from about $280 billion in April to $263 billion. The $17 billion decline represents a 6% drop over six months.
Binance accounts for 70% of stablecoin supply held on exchanges. Its 90-day moving average market capitalization fell 20%, from $51 billion to $34 billion. Darkfost linked part of the decline to a platform hack, which saw about $3 billion in stablecoins extracted.
However, the analyst said Binance's stablecoin capitalization had been falling for more than a year. The wider market has followed the same direction. Darkfost attributed the trend mainly to weak demand and limited incoming liquidity.
The analyst also pointed to geopolitical and economic events, as well as repeated crypto exploits. These developments may make investors more cautious about holding crypto assets. Darkfost said liquidity needs to return to prevent recent market gains from reversing.
The historical chart tracks USDT, USDC, DAI and FDUSD alongside Bitcoin. USDT grew from about $15 billion to nearly $180 billion at its peak. It currently is around $180 billion, although recent data shows a slight retreat toward $175 billion.
Source: Coinglass
USDC rose from below $10 billion to roughly $60 billion to $70 billion. It now stands near $65 billion. DAI generally remains below $10 billion, while FDUSD holds a smaller market share.
Bitcoin climbed from approximately $30,000 to peaks above $120,000 before several corrections. Periods of expanding stablecoin capitalization broadly coincided with stronger BTC performance. However, new stablecoin issuance does not automatically create immediate buying pressure.
The chart analysis identifies sustained USDT and USDC growth as potential support for Bitcoin and altcoins. However, prolonged stagnation or contraction could reflect weaker liquidity and speculative demand.
