Stablecoin Supply Tops $300 Billion as Growth Slows

The total supply of stablecoins has surpassed $300 billion, though the pace of market growth is slowing.

Crypto news outlet The Block reported on May 19 that total stablecoin supply recently moved above $300 billion.

Tether's USDT supply rose by more than $5 billion over the past month.

Over the same period, the combined supply of USD Coin, USDe and PayPal USD declined by $4.2 billion.

As a result, net growth in the overall stablecoin market was limited to about $900 million.

The growth rate based on total supply was about 0.3%.

Market participants say the trend suggests existing stablecoin funds are moving into USDT rather than new money entering the market.

In global digital-asset markets, preference for dollar-based stablecoins with safe-haven characteristics has strengthened amid geopolitical risks and uncertainty over interest rates.

The market is also watching how the shift in stablecoin fund flows could affect crypto liquidity and the decentralized finance, or DeFi, market.