The stablecoin market records its first monthly decline in over two years

Source: CritpoTendencia Original Title: The stablecoin market records its first monthly decline in over two years Original Link: The global capitalization of stablecoins is set to experience its first monthly drop in 2025 after 26 months, according to a report published by CoinDesk Data.

This contraction, although moderate, marks a trend shift for a key segment of the crypto ecosystem and reinforces risk analysis and portfolio adjustments across the industry.

For the first time in 26 months, the total stablecoin market capitalization is recording a monthly decline. This not only means fewer tokens in circulation, but also that more stablecoins are being redeemed than issued. Capital is being withdrawn instead of increasing its exposure, and that is significant.

Capitalization adjustment: signs of cooling for stablecoins

The total market value of stablecoins closed the month at $303 billion, representing a 1.48% decrease—equivalent to about $4.54 billion—compared to the previous month. Combined volume between spot and derivatives trading also fell, standing at around $1.48 trillion.

Tether (USDT) maintained its dominance with nearly $184 billion in circulation, while USDC and other issuers saw a decrease in their capitalization. This adjustment reflects lower demand for defensive positions and a technical reshuffling among traders and institutions.

The contraction is due to several factors: reduced risk exposure, lower speculative activity, and liquidity adjustments in an uncertain macroeconomic environment. Additionally, major holders have reorganized portfolios to prioritize liquid reserves and low volatility, in line with the prevailing caution in global financial markets.

Alternative advances and diversification beyond the dollar

Despite the pullback in the leading segment, some alternative stablecoins posted notable growth. RLUSD surpassed $1 billion in capitalization after a 27.3% monthly increase.

A historic high was also recorded for euro-denominated stablecoins, evidencing growing diversification into currencies other than the US dollar.

This partial migration could be due to the search for lower currency exposure and stricter regulatory frameworks in traditional markets.

The increased institutional interest in new options and alternative currencies reflects a hedging strategy and adaptation to potential regulatory changes at the international level.

Implications for portfolio management and future outlook

The decline in stablecoin capitalization marks a technical pause after a cycle of sustained growth. For investors and professional managers, this adjustment means reviewing reserve quality, optimizing liquidity, and monitoring regulatory risk.

Stablecoins with greater transparency and solid backing, such as USDT and RLUSD, are emerging as preferred options in tense scenarios.

The correction could also accelerate regulatory debates and prompt issuers to strengthen auditing and disclosure practices. Meanwhile, the ECB and other entities have warned about systemic risks associated with the expansion of these assets, so a more demanding environment is expected in the coming months.