The global stablecoin market reached a new all-time high in the second week of December, surpassing $310 billion as fiat-pegged tokens regained momentum.
Data from DefiLlama shows the stablecoin sector peaked at approximately $310.09 billion on Saturday, marking its strongest level to date.
The latest milestone follows a brief pullback in mid-November, when total stablecoin market capitalisation slipped from $309 billion to around $302.88 billion.
Over the past seven days, the market expanded by roughly 0.57%, with close to $1.79 billion flowing into stablecoin supply.
Tether’s USDT maintained its dominant position, accounting for just over 60% of the total market with a capitalisation of $186.26 billion.
USDT added more than $536 million over the week, reinforcing its role as the primary liquidity vehicle across crypto markets.
Circle’s USDC also recorded strong inflows, growing by approximately $613 million to reach a market capitalisation of $78.41 billion.
Among the ten largest stablecoins, Circle’s USYC posted the strongest weekly percentage gain, rising by just over 4%.
In contrast, BlackRock’s tokenised fund BUIDL experienced a sharp decline, falling more than 13% over the same period.
BUIDL’s market value now stands near $1.32 billion, reflecting a broader slowdown in yield-focused stablecoin products.
On a monthly basis, BUIDL has contracted by more than 42%, with nearly $1 billion exiting the token.
Outside the top ten, Tron’s USDD surged by more than 23% over the week, while crvUSD gained close to 29%.
Yield-linked stablecoins continued to struggle, with Ethena’s USDe falling nearly 3% and USDtb declining almost 19%.
Market data indicates that yield-bearing stablecoins have faced sustained pressure since the October crypto market downturn.
According to Stablewatch.io, the combined market capitalisation of yield-bearing stablecoins has dropped by more than 9% over the past 30 days.
The sector’s total value now sits slightly above $18 billion as redemptions continue to outweigh new issuance.
Several smaller yield tokens saw steep declines, including alUSD, which fell 73%, and smsUSD, which dropped 67% over the past week.
Analysts note that recent growth has been driven almost entirely by non-yield-bearing payment stablecoins as investors prioritise liquidity.
The shift highlights a defensive stance heading into year-end, with market participants favouring simplicity over complex yield strategies.
Whether this preference for payment-focused stablecoins extends into 2026 remains uncertain as broader risk sentiment continues to evolve.