Stablecoin Shakeup: $12 Billion Disappears in 2 Months While Tether Refuses to Flinch

The article says the stablecoin market has contracted sharply, losing $12.413 billion since May 17 and another $1.555 billion in the latest week. Despite the broad pullback, Tether’s USDT and Circle’s USDC were nearly unchanged, while smaller and yield-focused issuers saw larger moves: Sky’s USDS fell 12.3%, USD1 dropped 4.59%, BlackRock’s BUIDL declined 8.68%, and Global Dollar’s USDG rose 9.08%. The article frames the shrinkage less as a broad crypto risk-off event and more as evidence of intensifying competition among stablecoin issuers based on yield, utility, and product features. For Bitcoin, the takeaway is largely indirect and neutral: stablecoin supply is shrinking even as BTC and major altcoins hold up, suggesting capital is rotating within crypto rather than exiting solely due to fear.