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▲ Stablecoin ©Da-sol Go
According to investment media FXStreet on July 2 (local time), the supply of yield-bearing stablecoins decreased by more than $3.5 billion in the second quarter of 2026, marking the first halt in quarterly growth that had continued for approximately three years. While crypto-based yield products contracted, US Treasury-based products continued to grow, showing a clear divergence in market trends.
According to a CEX.IO report, the supply of yield-bearing stablecoins decreased by 15% during the second quarter. Ethena's sUSDe saw its supply drop by 52%, a reduction of approximately $2 billion, and Sky's sUSDS also decreased by 16%. In contrast, products based on US Treasuries continued to show strength. BlackRock's BUIDL increased by 2%, Circle's USYC by approximately 16%, and Ondo Finance's USDY by over 66%, indicating a shift of funds towards traditional asset-backed products.
Amidst this trend, the overall stablecoin market also recorded a quarterly supply decrease for the first time since Q3 2023. The total supply fell from $315 billion to $312 billion, and the adjusted trading volume also decreased by 5.5%. In the first quarter of this year, the supply increased by approximately $8 billion, reaching an all-time high of $315 billion, with yield-bearing stablecoins being considered a major growth driver at the time, but the atmosphere changed rapidly in the second quarter.
Signs of market slowdown appeared from the beginning of the year. In the first quarter, retail investor-sized transactions decreased by 16%, and automated trading accounted for approximately 76% of the total stablecoin trading volume. In the second quarter, the total number of transactions decreased by 530 million to 4.48 billion, marking the largest quarterly decrease ever. However, small transfers under $250 increased by 5% to 19.39 billion transactions, indicating that peer-to-peer small payments maintained a relatively robust trend.
The media reported that the contraction in the stablecoin market aligns with a general slowdown in activity across the cryptocurrency market. Institutional data provider Talos cited the decrease in stablecoin supply, outflows from Bitcoin (BTC) spot ETFs, and a slowdown in corporate Bitcoin purchases as key factors for the demand slowdown in the second quarter. Tanay Ved, a senior researcher at Talos, explained that if the stablecoin supply increases again, new capital will flow into the crypto ecosystem and help restore on-chain liquidity. He added that the best indicator of institutional investor sentiment is Bitcoin spot ETF flows, and that ETF funds, corporate Bitcoin purchases, and stablecoin supply tend to move together when market momentum changes.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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