Stablecoin Market Capitalization Falls $17 Billion in Six Months

Stablecoin market capitalization has fallen to $263 billion, its lowest level in more than a year, after shrinking by about $17 billion since April as crypto-market liquidity contracted.

The total stood near $280 billion in April, making the decline roughly 6% over six months. Analyst Darkfost attributed the contraction to weak demand and limited new capital entering crypto markets.

The pullback is also visible on centralized exchanges. Binance holds about 70% of the stablecoin supply on those platforms, while the 90-day moving average of stablecoin value on Binance has fallen from $51 billion to $34 billion. Darkfost described the Binance decline as a trend lasting more than a year that has moved in line with the broader market.

Darkfost also said recurring security breaches and attacks may be affecting investor willingness to take crypto risk. He said the market needs fresh liquidity and warned that a continued lack of inflows could reverse positive trends from recent months.