[DigitalToday reporter Chi-gyu Hwang] Total stablecoin supply has exceeded $300 billion, but the growth trend appears to be stalling.

According to a recent report by The Block, only Tether's USDT increased its supply by more than $5 billion over the past month, while the combined supply of USDC, USDe and PYUSD fell by about $4.2 billion over the same period. Net growth was $900 million, with the monthly growth rate limited to 0.3 percent.

The Block said the structure is that each new $1 entering the stablecoin market is USDT replacing $1 that exits USDC, USDe and PYUSD. That means even if Tether continues issuing, total supply is not increasing meaningfully.

A decline in the supply of Ethena's synthetic dollar USDe is being cited as a structural problem. USDe supply fell 28 percent over a month and about 34 percent from the start of the year.

USDe is structured to generate returns from perpetual futures trading fees. After a sharp market drop last October, fees fell sharply and yields also declined. The Block said it has become less attractive than other over-collateralised stablecoins.

With overall supply stalling and only USDT growing, bank-issued stablecoins and new issuers compliant with the GENIUS Act are getting off to a tougher start than expected. To directly take USDT market share, they would need to offer higher yields, better distribution channels and regulatory advantages that USDT cannot match, but no one has yet shown such capabilities, The Block said.