USDT strengthens, USDS suffers, stablecoins enter a new era

stablecoins have suffered historic capital outflows for two months. Which stablecoins will stand out in this financial turmoil?

More than $12 billion has been withdrawn from the sector, the most severe contraction since 2022. Tether remained firm, Sky Dollar plunged, and Global Dollar grew significantly. The stablecoin market is undergoing a profound transformation.

Quick view of key data

Since mid-May, US$12.4 billion has flowed out of the stablecoin market, setting the largest contraction since 2022. Tether and USDC remained resilient, with Sky Dollar plummeting 12%, and Global Dollar soaring 9%. Hyundai Motor only takes 7 minutes to complete the international stablecoin transfer, while traditional banks take 4 hours. Visa predicts that in the AI proxy economy, stablecoins will dominate micropayments.

US$12.4 billion evaporated: the most serious capital outflow since 2022

Since May 17, 2026, the stablecoin market has lost US$12.4 billion, the largest contraction since 2022. Last week alone,$1.5 billion disappeared from the sector. At present, the total market value of stablecoins has dropped to approximately US$311 billion, down 0.61% in seven days. However, the decline was not a typical panic selling. During this period, the prices of Bitcoin and major altcoins remained stable. If the market was truly dominated by fear, digital assets would have fallen collectively. But this is not the case, which raises questions about the real cause of the outflow. The current contraction seems to have less to do with market fears and more to do with the deep structural evolution of the field. Stable coins are no longer just a simple alternative to the US dollar. They are now competing in terms of yields, functionality and practicality. Capital is flowing into assets that provide attractive returns. stablecoins that only provide stability are losing ground. The market is quietly reshaping its own landscape.

Giants hold ground, challengers compete for position

Tether remained firm with a market value of US$184.055 billion, with a weekly decline of only 0.06%. Circle followed closely with a market cap of $73.376 billion, a weekly decline of 0.04%. These two giants currently account for 82% of the stablecoin market. However, under this seemingly stable surface, a silent war is raging. Sky Dollar fell 12.30%, a dizzying decline that sent its market value below $7 billion. World Liberty Financial's market value fell by 4.59%. BlackRock BUIDL fell 8.68%, a significant decline for an institutional participant. In contrast, Global Dollar surged 9.08%, reaching a market value of 31. US$6.4 billion. PayPal rose 1.60% to $2.877 billion. This astonishing divergence reveals the fundamental opposition inherent in the market. Stable coins that provide yields attract capital seeking returns. The stablecoins, which only serve as a "capital parking lot", are losing ground. The market no longer rewards simple stability; now it demands yields and practicality.

Hyundai Motor completes the transfer in 7 minutes, Visa foresees the future: Giant admission

Hyundai Motor became the first South Korean conglomerate to use Avalanche for international stablecoin transfers. A $20,000 transfer from Hyundai Motor America to Hyundai Motor Mexico was completed in just seven minutes. The difference is significant compared to 3 to 4 hours required to pass through traditional banks. Hyundai Motor plans to expand the system to its European subsidiaries, with partners including Circle and Visa. Institutional adoption of stablecoins is accelerating significantly. At the same time, Visa and Artemis jointly released a report on the economy of AI agents. The report points out that in an automated economy, credit cards will still be suitable for macro transactions, while stablecoins will dominate small payments, especially transactions below $1. Visa believes that credit cards and stablecoins are not competitors, but are part of the same system. Traditional financial giants are now entering the game. This institutional movement may upset the current balance of the stablecoin market.

US$12.4 billion flows out of stablecoins: Tether stands, USDS falls, USDG takes off, Hyundai and Visa join the dance floor

The $12.4 billion contraction is not a sign of market weakness, but a sign that the market is moving towards an unprecedented stage of maturity. Hyundai Motor and Visa are just the first signs of a wave of structural adoption that is turning stablecoins into payment tools rather than just stores of value. However, the road ahead is not smooth: on the regulatory front, Europe's MiCA regulations may redefine the rules for stablecoin issuers. Participants like Tether, who dominate the market through liquidity, need to adapt to a new environment where yield and transparency become key criteria. The success of Global Dollar and PayPal proves that capital now rewards innovation and practicality. The stablecoin market is no longer a calm ocean. It is becoming a battlefield where only the most agile participants can survive. The question is no longer who dominates the market today, but who can evolve tomorrow. This reshuffle has just begun.

Shuffle key data

US$12.4 billion evaporated in two months;USDT dominated the market with a market value of US$184 billion;USDS fell 12.3%;USDG surged 9.08%. The United States can be proud of its dominance in the stablecoin space. But on the European side, as this wave of digital finance hits, clouds are gathering. The Bank for International Settlements warns that the expansion of stablecoins is exacerbating the trend of dollarization in emerging economies.