The stablecoin market appears to be entering a plateau after rapid growth.
Cointelegraph reported on Jan. 22 that Axis co-founder Jimmi Shiu (짐미 쉬우) analysed the trend, saying tighter U.S. and European regulation has reduced institutional issuance and rising Treasury yields have lowered the benefits of holding stablecoins.
Rising Treasury yields prevent stablecoin holders from earning real returns, he said, reducing speculative issuance and reshaping the market to strengthen its role as a payment and liquidity tool. Shiu said regulation and higher Treasury yields have combined after explosive growth in 2025, pushing the market into an adjustment phase.
Stablecoin supply, which more than doubled from 2024 to 2025, has stalled at about $310 billion since October 2026. This is linked to a $19 billion forced deleveraging triggered after a liquidity shock on Oct. 10. The cryptocurrency market has since failed to recover amid persistent selling pressure and conservative investor sentiment.
Chi-gyu Hwang
delight@d-today.co.kr