Stablecoins Resume Their Upward Climb
The stablecoin market expanded again over the past seven days, adding more than $2 billion in fresh capital and lifting total sector capitalization to $322.74 billion, according to Defillama data. After hovering just above the $320 billion threshold the previous week, the segment has continued to grow, underlining the central role dollar-linked crypto assets play in market liquidity, trading, and onchain settlement.
The latest figures suggest that demand for stable-value digital assets remains resilient even as performance among individual issuers diverges. While the largest products continued to dominate, several smaller names and tokenized Treasury-backed instruments also posted noticeable gains, showing that the market is broadening beyond a single use case.
USDT Maintains a Firm Grip on Market Leadership
Tether’s USDT remained the clear heavyweight of the sector. As of May 10, its market capitalization stood at $189.63 billion, representing a weekly increase of 0.05%. That modest gain was enough to keep USDT comfortably in first place and maintain its commanding share of the stablecoin economy.
Within the total stablecoin market of $322.74 billion, USDT accounted for 58.76%. That level of dominance reinforces Tether’s position as the primary liquidity rail across the broader crypto ecosystem. Even though its weekly growth was relatively limited compared with some rivals, USDT’s sheer scale continues to make it the most important benchmark for the sector.
Its role goes beyond market share alone. A stablecoin of this size is often treated as a barometer of activity across exchanges, DeFi venues, and cross-border crypto flows. The latest data shows that Tether remains deeply embedded in those functions despite intensifying competition from other dollar-backed products.
USDC Posts One of the Strongest Weekly Inflows
Circle’s USDC, the second-largest stablecoin, showed stronger momentum over the same period. Its market capitalization rose 2.08% over seven days to reach $78.96 billion. More importantly, between May 3 and May 10, the token attracted about $1.61 billion in new inflows, making it one of the best-performing large stablecoins of the week.
That increase points to renewed appetite for fully dollar-backed crypto assets. In a market where capital often rotates quickly between instruments, USDC’s weekly inflow stood out as one of the clearest signs that investors and users are still willing to deploy fresh funds into stable-value tokens when confidence and utility align.
The contrast between USDT and USDC was notable. Tether held its dominant market position with only a slight increase, while USDC delivered more visible expansion from incoming capital. Together, however, the two top issuers continued to set the tone for the sector and remained far ahead of the rest of the field.
Mixed Performance Across the Rest of the Top 10
Below the top two, the stablecoin rankings showed a much more uneven picture. USDS from Sky held the third position with a market capitalization of $7.88 billion, but it had a difficult week, falling 6.37%. That decline made it one of the weaker performers among the largest dollar-linked assets.
Sky’s DAI followed in fourth place at $4.66 billion, posting a more modest weekly gain of 0.63%. Meanwhile, USD1 from World Liberty Financial ranked fifth with $4.43 billion in market value, though it slipped 2.12% over the period.
Further down the table, Ethena’s yield-bearing stablecoin USDe appeared to reverse a streak of outflows. It gained 1.6% during the week, bringing its market capitalization to $3.96 billion. PYUSD, issued by PayPal, also showed fresh signs of activity, rising 1.11% to $3.41 billion.
These moves illustrate a market that is still highly segmented. Some products are benefiting from fresh allocations, some are holding steady, and others are losing ground even as the sector as a whole grows. The result is a stablecoin market that is expanding in aggregate while becoming more differentiated at the issuer level.
Tokenized Treasury Products Continue Gaining Ground
One of the more notable themes in the latest data was the continued rise of tokenized Treasury-backed instruments. Blackrock’s BUIDL climbed 5.81% over the week, reaching a market capitalization of $2.986 billion. Circle Internet Group’s USYC, another product backed by U.S. Treasuries, rose 2.68% to $2.981 billion.
Although these products are distinct from traditional payment-focused stablecoins, their growth strengthens the presence of onchain dollar assets backed by short-duration government securities. Their inclusion among the sector’s largest dollar-linked instruments suggests that tokenized yield and Treasury exposure are increasingly becoming part of the broader stablecoin conversation.
This trend matters because it points to expanding use cases for blockchain-based dollar products. Investors are not only seeking transactional liquidity through classic stablecoins, but also showing interest in instruments that connect onchain infrastructure with conventional low-risk financial assets.
USDG Leads Weekly Gains Among Top Stablecoins
The strongest weekly percentage gain among the top 10 came from USDG. The token jumped 11.89% over seven days, lifting its market capitalization to $2.658 billion. That made it the top weekly performer among the largest stablecoins tracked in the report.
While USDG remains much smaller than the leading names, its rapid weekly growth brought additional attention to newer entrants in the dollar-linked crypto market. In a sector often dominated by legacy issuers, strong short-term expansion from a smaller product can signal shifting user interest, new distribution traction, or broader experimentation with alternative stablecoin models.
At the same time, the report does not suggest a uniform rotation away from incumbents. Rather, it highlights a market where capital is returning to dollar-pegged crypto assets overall, but where that capital is being distributed unevenly across established issuers, newer stablecoins, and tokenized Treasury structures.
A Growing Sector, but Not a Uniform One
The broader takeaway from the latest seven-day snapshot is that stablecoins remain a core pillar of the digital asset economy. With total capitalization now at $322.74 billion, the sector has continued to grow from an already elevated base. More than $2 billion in fresh capital over a single week is a meaningful signal, especially at this scale.
Still, the composition of that growth matters. USDT preserved its dominance near $190 billion. USDC captured one of the largest weekly inflows. USDG delivered the fastest percentage growth among the top 10. And Treasury-backed products such as BUIDL and USYC kept building momentum.
In other words, the stablecoin market is not only getting larger; it is also becoming more complex. Demand for digital dollars remains strong, but the winners are not all advancing at the same pace. For now, the latest data suggests that capital continues to flow back into dollar-linked crypto assets, even as competition inside the sector becomes more pronounced.