{"id":74688,"date":"2026-06-29T03:20:39","date_gmt":"2026-06-29T03:20:39","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/cryptos-dry-powder-is-drying-up-as-stablecoin-sector-contracts-by-9-4b\/"},"modified":"2026-06-29T03:20:39","modified_gmt":"2026-06-29T03:20:39","slug":"cryptos-dry-powder-is-drying-up-as-stablecoin-sector-contracts-by-9-4b","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/cryptos-dry-powder-is-drying-up-as-stablecoin-sector-contracts-by-9-4b\/","title":{"rendered":"Crypto&#8217;s Dry Powder Is Drying up as Stablecoin Sector Contracts by $9.4B"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">USDT and USDC led a $2.119B stablecoin outflow in 7 days, signaling weaker crypto liquidity.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">DAI gained 5.48% since May 28, but USDT fell $3.79B, reflecting uneven capital rotation.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Tokenized U.S. Treasury tokens fell 2.58% since May 28, hinting that a capital retreat may continue.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Stablecoin Supply Has Fallen by $9.445 Billion Since May 8, Trimming Dry Powder Across Crypto Markets<\/h2>\n<p>Since May 8, 2026, the <a href=\"https:\/\/news.bitcoin.com\/brazil-proposes-mandatory-24-hour-hold-on-large-crypto-stablecoin-transactions\/\">stablecoin<\/a> sector has contracted by $9.445 billion over a 51-day stretch. A declining <span>stablecoin<\/span> market capitalization is widely viewed as a <span>bearish<\/span> indicator because it signals more than traders remaining on the sidelines; it suggests capital, or \u201cdry powder,\u201d is actively flowing out of the market.<\/p>\n<p>Seven-day data show the market recorded $2.119 billion in outflows over the past week, with declines spread across <span>USDT<\/span>, USDC, USD1, USDe, and PYUSD, according to <a href=\"https:\/\/defillama.com\/stablecoins\" target=\"_blank\" rel=\"noopener noreferrer\">defillama.com statistics<\/a>.<\/p>\n<figure id=\"attachment_826867\" aria-describedby=\"caption-attachment-826867\" style=\"width:1616px\" class=\"wp-caption aligncenter\"><figcaption id=\"caption-attachment-826867\" class=\"wp-caption-text\">The top five <span>stablecoins<\/span> by <span>market cap<\/span> and their seven-day percentage losses as of June 28, 2026.<\/figcaption><\/figure>\n<p>The <span>stablecoin<\/span> sector now stands at $313.191 billion, with <span>USDT<\/span> commanding a $184.898 billion market capitalization, giving it a 59.04% share of the entire market.<\/p>\n<h2>Tether\u2019s USDT and Circle\u2019s USDC Accounted for Most of the Recent Outflows<\/h2>\n<p>The bulk of the <span>stablecoin<\/span> outflows occurred during the past 30 days, with tether ( <span>USDT<\/span>) shrinking by $3.79 billion since May 28. <a href=\"https:\/\/news.bitcoin.com\/rob-hadick-warns-tether-and-circle-face-rising-pressure-from-new-stablecoins\/\">Circle<\/a>\u2018s USDC recorded a $2.419 billion decline, while Sky\u2019s USDS posted a $587 million reduction. Sky\u2019s DAI, on the other hand, bucked the trend by posting a $251 million increase, climbing 5.48% since May 28.<\/p>\n<p>Since May 28, about $69 million has flowed out of World Liberty Financial\u2019s USD1, trimming its supply by 1.45%, while Ethena\u2019s USDe declined 0.69%, or just over $31 million, during the same period. As the total <span>stablecoin<\/span> supply contracts, the pool of available buying power capable of absorbing selling pressure also diminishes, and this latest <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoin<\/a> drawdown has unfolded alongside the broader <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> market decline.<\/p>\n<h2>Treasury-Backed Tokens Decline in Tandem<\/h2>\n<p>A similar pattern has emerged in the real-world asset ( <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-real-world-assets-rwa\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">RWA<\/a>) sector, particularly among tokens backed by U.S. Treasuries, according to <a href=\"https:\/\/app.rwa.xyz\/treasuries\" target=\"_blank\" rel=\"noopener noreferrer\">rwa.xyz metrics<\/a>. During June, the tokenized U.S. Treasuries market declined from $15.86 billion to the current $14.59 billion, and since May 28, it has surrendered 2.58% of its total value. Taken together, the contraction across <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-are-stablecoins\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">stablecoins<\/a> and tokenized Treasury products points to a broader rotation of capital and a meaningful retreat from the market.<\/p>\n<p>How long that trend persists is anyone\u2019s guess.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/cryptos-dry-powder-is-drying-up-as-stablecoin-sector-contracts-by-9-4b\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways USDT and USDC led a $2.119B stablecoin outflow in 7 days, signaling weaker crypto liquidity. DAI gained 5.48% since May 28, but USDT fell $3.79B, reflecting uneven capital rotation. Tokenized U.S. Treasury tokens fell 2.58% since May 28, hinting that a capital retreat may continue. Stablecoin [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":74689,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/74688"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=74688"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/74688\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/74689"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=74688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=74688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=74688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}