The stablecoin market exceeds 260 billion USD as the supply of USDS and USDe increases by nearly 25%.

In just the past seven days, the market capitalization of stablecoins has exceeded 260 billion USD and continues to grow. Just last week, this sector recorded nearly 5 billion USD, with almost 2 billion USD coming from the newly issued Tether (USDT).

According to data from DefiLlama, the total value of all stablecoins currently stands at 264.986 billion USD, with USDT accounting for a dominant share of 61.86%. As of today, Tether's market capitalization has reached 164 billion USD, an increase of 1.19% over the past week due to 1.925 billion USDT being newly issued.

Total market capitalization of stablecoins | Source: DefilLama## The supply of USDS and USDe increased by nearly 25%, boosting competition among the top stablecoins.

Circle's USDC remains in second place with a market cap of 64 billion USD, despite a slight decrease of 0.54% after 348 million USDC were withdrawn from assets under management (AUM). Meanwhile, Ethena's USDe saw impressive growth of 24.63%, with approximately 1.425 billion USDe issued, raising the total market cap to 7.212 billion USD.

Sky's USDS even led in growth rate last week, with 989.77 million USDS newly introduced to the market, helping the market cap surge by 24.95% to 4.956 billion USD. Stablecoins ranked from 5 to 9 by market cap all recorded declines in the past week.

Meanwhile, PayPal's PYUSD rose slightly by 2.98%, with an issuance of an additional 25.75 million tokens, bringing the total market capitalization to 890.68 million USD, enough to maintain its position as the 10th in the stablecoin ranking.

Among all 100 stablecoins tracked, Sky's USDS recorded the highest increase of the week, closely followed by Ethena's USDe.

Increasing competitive pressure, the market enters a new differentiation phase

Although major stablecoins maintain their positions, the strong rise of alternatives such as USDe and USDS indicates that the market is entering a distinctly fragmented phase. The increased token issuance activity signals a tumultuous period ahead, especially if new coins continue to gain momentum and attract additional liquidity.

In addition, new regulations such as the stablecoin law under the GENIUS Act may change the landscape. Standardized oversight could empower large issuing organizations or enable new players to rise by fully complying.

Regardless, the stablecoin economy is still on a strong expansion trajectory and shows no signs of slowing down.

Han Xin