In The Stables: The Rise of Yield-Bearing Stablecoins

This week’s edition of In The Stables highlights the accelerating growth of yield-bearing stablecoins and their increasing divergence from the broader stablecoin market. While total stablecoin market capitalization rose 1.2% WoW to $303 billion with net inflows of $3.7 billion, activity indicators softened, with average daily volume declining 7.8% and transactions slipping 0.3% as leverage unwinds and borrowing demand weakens. At the same time, the supply of yield-bearing stablecoins continues to expand rapidly—growing more than 15× faster than the broader market over the past six months—suggesting growing demand for onchain dollar assets that function more like tokenized money market funds than payment instruments. Institutional adoption also advanced this week, hig...