The total market capitalization of stablecoins decreased by $36.95 million in the past week, recording a modest decline of 0.02% while USDT increased by 0.36% and DAI surged by 6.39%.
The market recorded a week of slight volatility as the total market capitalization fell to $242.97 billion, according to data from defillama.com. Despite the decline, the sector still demonstrates relative stability, with leading stablecoins continuing to strengthen their positions in the cryptocurrency ecosystem.
A clear differentiation between major stablecoins
Tether (USDT) – the largest in the market – continues to show strength with a market capitalization of $149.87 billion, up 0.36% over the past 7 days. Currently, USDT accounts for 61% of the total market capitalization, asserting its dominant position. The $150 billion threshold is very close, marking an important milestone for this stablecoin.
In contrast, Circle's USDC recorded a decline of 1.21% during the same period, with a current market cap of $60.808 billion. The gap between the two leading stablecoins continues to widen, reflecting a significant shift in investor preferences.
Source: Defilama.com
DAI – the largest decentralized stablecoin – recorded an impressive increase of 6.39% over the week, raising its market capitalization to $4.372 billion. Meanwhile, BlackRock's BUIDL token increased by 1.33% compared to last week, reaching a market cap of $2.897 billion. Notably, BUIDL led the growth for the month with a strong increase of 26.14%.
Not all stablecoins have positive results. Sky Dollar (USDS) saw a significant decline of 5.5% in market cap, while Ethena’s USDe decreased slightly by 0.56%. These contrasting fluctuations contribute to the overall slight decline of the stablecoin market.
The clear differentiation between stablecoins shows that market sentiment is changing and competition is increasing within the ecosystem. This trend occurs against the backdrop of Bitcoin, Ethereum, and many altcoins experiencing strong price increases, leading investors' risk appetite to shift towards higher volatility assets.
The growth momentum of the cryptocurrency market in general has slightly reduced the demand for holding stablecoins, as traders shift capital to tokens with higher profit potential. Nevertheless, with a total market capitalization of nearly $243 billion, the stablecoin market still plays an important role in providing liquidity and is a safe haven choice in the cryptocurrency ecosystem.
