Total Stablecoin Cap Falls $1.9 Billion This Week While Sky Dollar Leads the Slide

Tether lost $791 million this week, a single-token drop that accounted for 41% of the $1.9 billion pulled from the entire stablecoin market. Most of its top competitors also finished lower, with USDC shedding 1.05% and Sky Dollar plunging 2.36%.

The total stablecoin market cap sits at $311.311 billion, down 0.61% over the past seven days, a drop of $1.911 billion, according to Defillama data. As of this weekend, Tether’s USDT now accounts for 59.14% of that total.

USDT dropped a modest 0.43% over the week but remains the third largest crypto asset by market cap in the entire space, trailing only bitcoin and ethereum. Circle’s USDC sits in second place among stablecoins with a $73.098 billion market cap as of July 5. USDC fell 1.05% over seven days, a steeper drop than USDT posted.

Paypal’s PYUSD posted the strongest weekly performance among the top 15 stablecoins this past week. PYUSD climbed 4.25% to reach a $2.836 billion market cap, a move that put daylight between it and every other token in the group. No other stablecoin in the top 15 matched that pace. Ripple’s RLUSD followed with a 0.96% gain, pushing its market cap to $1.585 billion. USDD added 1.55%, reaching $1.396 billion.

Sky dollar (USDS) fell 2.36% over seven days, the sharpest decline among the group. Its market cap now stands at $8.02 billion, still enough to hold third place overall behind Tether and USDC. World Liberty Financial’s USD1 dropped 1.77% to a $4.61 billion market cap. Global dollar (USDG) fell 1.19% to $2.871 billion. Ethena’s USDe slipped 0.49% to $4.439 billion.

Sky’s original stablecoin DAI moved against that trend, gaining 0.09% to reach $4.851 billion. Circle’s USYC and Blackrock’s BUIDL both held close to flat, losing 0.06% and 0.21% respectively. Among the bottom five in the top 15, gains outnumbered losses. Ondo’s USDY stayed nearly flat, down 0.01% to $2.157 billion. Falcon’s USDf rose 0.24% to $1.258 billion. United stables (U) gained 0.81%, closing the week at $1.023 billion, its first time crossing the $1 billion threshold in recent weeks.

Several tokens in the bottom half of the top 15 carry a different structure than USDT or USDC. BlackRock USD and Circle USYC represent tokenized money market products, offering exposure to short-term government debt rather than functioning purely as trading dollars. Ondo US Dollar Yield follows a similar model, passing along yield from underlying Treasury holdings. These yield-bearing tokens compete for capital that might otherwise sit in a traditional bank account or money market fund.

Stablecoin market cap often signals how much capital sits ready for deployment into Bitcoin and other crypto assets. A 0.61% weekly dip is a small move compared to the swings stablecoins have seen in past years. Tether’s dominance near 59% means its weekly performance carries the most weight for the total figure. A move in USDT of even half a percent shifts billions of dollars in market cap, more than most other tokens in the top 15 combined.

Traders tracking PYUSD’s 4.25% gain will watch whether Paypal’s stablecoin keeps climbing or gives back the move next week. The same applies to Sky Dollar’s decline, the largest drop in the group.