Stablecoin Market Adjustments in Early 2026

The stablecoin sector experienced a decline of 773 million over the past week, marking a 2.5 billion pullback since December 13. Despite a rebound in the broader crypto markets, which surpassed the 3 trillion mark, the stablecoin market slipped by 0.25 . Tether USDT saw a slight increase of 0.16 299 million , maintaining its position as the largest stablecoin with a market cap of approximately 187 billion.
Currently, USDT represents 60.80 of the total 307.57 billion stablecoin economy. Circle s USDC decreased by 1.49 week-over-week, with a market cap of 75.2 billion. In contrast, Sky s USDS gained 2.95 to reach about 6.3 billion, while Ethena s USDe remained relatively stable with a minimal increase of 0.02 .
USDe has fallen to fourth place after experiencing significant weekly pullbacks. Sky s DAI dipped by 0.87 to a market cap of 4.5 billion, and Paypal s PYUSD decreased by 2.84 to approximately 3.6 billion. Among smaller stablecoins, World Liberty Financial s USD1 rose by 4.09 to about 3.4 billion, while Falcon Finance s USDf fell by 2.62 to 2.1 billion.
The stablecoin sector reached an all-time high of over 310 billion on December 13 but has since seen a reduction of approximately 2.54 billion. The recent dip in USDC alone accounted for a 1.12 billion outflow this week. Despite these adjustments, the overall stablecoin market is not experiencing stress rather, it is undergoing a rebalancing process with capital shifting between established and emerging players.
In summary, the latest data indicates that the stablecoin market is easing off its December peak without losing stability. There is a reshuffling of rankings and a clearer understanding of liquidity trends as we enter 2026.