The stablecoin market experienced a notable pullback this week, shedding $1.925 billion from its total capitalization after a prolonged uptrend. Ethena's USDe led the decline with a 7.91% drop, bringing its market cap to $8.62 billion. More dramatically, Stream Finance's XUSD and Stable Labs' USDX both lost their dollar peg, trading at around $0.11 and $0.10 respectively.
Top Stablecoins Show Mixed Results; Tether Remains Dominant
According to DefiLlama data, Sky's DAI fell 4.28% to $4.88 billion, while World Liberty Financial's USD1 slipped 3.53% to $2.88 billion. PayPal's PYUSD and Falcon's USDf each decreased modestly by 0.42% and 0.53%, settling at $2.80 billion and $1.99 billion. BlackRock's BUIDL also saw a slight 0.23% decline. Circle's USDC, the second-largest stablecoin, only dropped 0.14%, maintaining a $75.39 billion market cap.
Meanwhile, Tether's USDT rose 0.09% to $183.55 billion, commanding a 60.09% market share of the total $305.477 billion stablecoin market. Ethena's USDtb also inched up 0.10% to $1.83 billion.
Mid-Tier Stablecoins Shine; Depegged Tokens Draw Attention
The week's standout performers were Sky's USDS and Ripple's RLUSD, which gained 11.34% and 9.04%, respectively, proving that mid-tier stablecoins can also capture the spotlight. Global Dollar (USDG) edged up 0.53% to $996.6 million. However, the depegging of XUSD and USDX became a focal point, with USDX dropping below $0.10 and XUSD hovering around $0.11 as of Saturday press time.
Market Outlook and Causes
Analysts attribute the market cap decline to a combination of capital outflows and individual token failures. While major stablecoins saw only minor corrections, the collapse of XUSD and USDX highlights the risks inherent in smaller alternatives. Tether's resilient lead suggests continued confidence in top-tier assets, though mid-tier volatility could invite renewed regulatory scrutiny.