Stablecoin Market Sees a 35% Drop in Market Capitalization Over the Past 18 Months

The stablecoin market has experienced a significant drop in market capitalization, with a 35% decrease over the past 18 months. Factors such as reduced retail participation, surging US treasury yields, and the high opportunity cost of holding stablecoins have contributed to this decline. The market is highly concentrated, with a few assets dominating the majority of the market. However, stablecoins outside the United States, particularly USDT, have been more resilient and continue to lead the way.