The stablecoin market pulled back slightly after reaching a new all-time high. Data shows that after the sector hit a record $310.426 billion on Jan. 17, total stablecoin market value declined by $3.327 billion over the following seven days. Even so, the move appears to be more of a post-peak rebalancing than a broad deterioration in the segment.
USDT Holds Firm While USDC Drives the Decline
At the top of the market, Tether’s USDT stood at about $186.59 billion in market capitalization, showing no meaningful change in issuance or reduction over the week. It currently represents 60.76% of the entire stablecoin market. That stability matters because USDT remains the core liquidity layer for crypto trading and settlement.
Circle’s USDC moved in the opposite direction, falling 5.44% over the week to roughly $72.90 billion. That decline translated into about $4.19 billion in outflows. Among major stablecoins, USDC accounted for the largest share of the market’s weekly contraction, underscoring how redemption activity in large issuers can still shape the overall sector.
Mixed Performance Across Mid-Tier and Yield-Linked Tokens
Beyond the two largest names, performance was mixed. Ethena’s USDe rose 1.51% to $6.57 billion, while Sky’s USDS added 0.78% to $6.25 billion. In contrast, DAI slipped 1.21% to $4.62 billion. Rather than pointing to a single market direction, the data suggests capital rotated among cash-like instruments, ecosystem-specific stablecoins, and yield-bearing products.
Mid-sized tokens showed stronger momentum in some cases. World Liberty Financial’s USD1 jumped 22.34% to $4.29 billion, outpacing Paypal’s PYUSD. Paypal’s token still posted a gain of 1.07%, bringing its market cap to $3.73 billion. Falcon Finance’s USDf edged up 0.26% to $2.06 billion.
Among smaller products, USDG climbed 2.46% to $1.52 billion, Ripple’s RLUSD rose 0.71% to $1.42 billion, and BlackRock’s Treasury-backed BUIDL was nearly unchanged, gaining just 0.02% to $1.27 billion.
USDY Posts the Biggest Gain
The strongest performer among the top 12 stablecoins was Ondo’s USDY, which surged 46.54% to around $1.25 billion. Its rise highlights continued demand for yield-oriented structures linked to tokenized U.S. Treasurys and onchain credit products.
Overall, the latest weekly figures suggest the stablecoin market has not weakened structurally after its record high. Instead, supply appears to be rotating across issuers and product categories. While the sector is modestly smaller than its peak, it remains close to record levels, signaling resilience rather than fragility.