While USDT grew by 5 billion dollars in the last month, the total stablecoin supply exceeded 300 billion dollars

There has been a remarkable movement in the stablecoin market recently. While the total stablecoin supply has risen to over $300 billion, the overall growth momentum in the industry has slowed significantly. In particular, last month’s data revealed that while USDT saw a strong increase, some rival stablecoins fell significantly.

USDT is on the rise, market growth is limited

USDT stood out with a $5 billion increase in May. As for the market overall, the total stablecoin supply showed a net growth of only $0.9 billion, or 0.3 percent. This means that the growth in the market is almost entirely due to USDT.

This rise in USDT compensated for the losses experienced by many stablecoins. USDC, USDe and PYUSD decreased by 4.2 billion dollars in total. If the growth in USDT had not occurred, there would have been a clear decline in the stablecoin market.

The report stated that new inflows were largely concentrated on the USDT side, while overall market growth slowed down considerably. This shows that growth is concentrated around a certain currency, rather than a broad-based increase in the sector.

While the stablecoin segment as a whole has struggled to attract new investors, much of the increased demand is focused on USDT alone.

Rivals saw sharp declines

The most notable decline in the list was experienced in USDe developed by Ethena. The monthly supply of USDe decreased by 28 percent; Since the beginning of the year, the decrease rate has approached 34 percent. The main reason for this decrease was shown to be the decrease in funding rates in perpetual futures markets. This tightness in the funding rate also caused the return obtained in interest-based strategies to decrease.

PYUSD, launched by PayPal, also showed a similar trend; Its supply decreased by 13 percent monthly. Although the exact changes in USDC are not disclosed, according to general figures, the total supply of this stablecoin has also decreased.

Mini dictionary: Perpetual futures are derivative contracts that do not have a specific expiration date and can continue indefinitely. In the crypto market, the balance between funding rates and buyers and sellers is maintained, and these rates play an important role in generating income.

These developments revealed a volatile picture in the stablecoin market. While most of the major stablecoins other than USDT lost value, the overall growth of the market appeared to be almost entirely covered by USDT.

Few new stablecoins attracted inflows

Not all stablecoins experienced losses in the month in question; Major minor tokens such as USDS and USD1 stood out with capital inflows. However, the amount of these inflows was not disclosed and they did not have as much impact on the market as the main stablecoins.

Still, the additional $5 billion in new supply of USDT alone surpassed the market’s net monthly growth, closing the gap. Losses in stablecoins other than USDT prevented the total supply from reaching a higher figure.

Current data shows that overall growth in the stablecoin market is quite limited and current movements consist mostly of intra-asset conversions and increased demand for USDT.