What changed stablecoin supply this week?

TLDR

Stablecoin supply saw mixed flows this week: USDC had net redemptions while USDT issuance slowed, yet total stablecoin market cap stayed near record highs.

1. USDC circulation decreased by about $1.3 billion over seven days, per a market update linked above. USDC fell by about $1.3 billion.
2. USDTs 60?day growth decelerated to roughly $4.83 billion, signaling slower new issuance. USDT growth decelerated.
3. Stablecoin market cap hovered near $310 billion, reflecting persistent inflows despite crypto volatility. Near $310 billion.

Deep Dive

1. USDC Redemptions

Circle issued roughly $4.7 billion and redeemed about $6 billion USDC in the last seven days, leaving a ~$1.3 billion net decrease and total circulation around $77.2 billion backed by short?term U.S. Treasury and repo reserves. USDC fell by about $1.3 billion.

• This likely reflects institutional rebalancing and holiday?period liquidity management rather than structural weakness.
• Smaller supply moves also occurred elsewhere, for example RLUSD burned 500,000%%CKPROTECTED4%% tokens in an on?chain supply cut. RLUSD burn.

2. USDT Issuance Slows

A 60?day measure of USDT market cap change fell from $15.38 billion to $4.83 billion, pointing to slower new issuance and a cautious liquidity backdrop into the holidays. Analysts note dry powder in stablecoin reserves that is not being aggressively deployed. USDT growth decelerated.

• Slower USDT growth often coincides with tighter market liquidity and sideways price action.
• The tone fits year?end positioning and macro uncertainty.

3. Market Cap Near Highs

Despite crypto selling pressure, total stablecoin market cap remained near $310 billion, with USDT ~60% market share. That indicates capital is parking in stables rather than fully exiting the ecosystem. Near $310 billion.

• Research also noted ~$1.4 billion in new stablecoins added last week, highlighting continued adoption momentum. About $1.4 billion in new stablecoins.
• Structural drivers (payments, on?chain settlement, clearer regulation) support the longer?term supply expansion.

Conclusion

This weeks stablecoin supply shift was shaped by net USDC redemptions, slower USDT issuance, and a near?record total cap that signals capital staying on?chain. Near term, holiday liquidity and macro caution kept issuance muted; renewed mints or a macro tailwind could re?ignite risk deployment from stablecoin reserves.