Hi, user_no_name

Trade now

Deposit

Logout
Login Sign Up
EN

Language

English English (Global)

English English (EU)

English English (UK)

English English (AU)

English English (ZA)

English English (St. Vincent)

Deutsch German

Español Spanish (Latam)

Español Spanish (Spain)

Français French

Dansk Danish

Italiano Italian

Nederlands Dutch

العربية Arabic

Svenka Swedish

Tiếng việt Vietnamese

Bahasa Melayu Malay

ภาษาไทย Thai

繁體中文 Traditional Chinese

简体中文 Simplified Chinese

Tagalog Tagalog

தமிழ் Tamil

हिन्दी Hindi

Português Portuguese

Bahasa Indonesia Indonesian

한국어 Korean

English English (BVI)
Markets

Products

Forex

Shares

Commodities

Indices

Crypto

ETFs

Bonds
Trading

Trading Platforms

Web Platform

App

MT4

MT5

Trading Central

Trading Tools

CFD Trading Calculator

Forex Margin Calculator

Commodities Profit Calculator

Forex Profit Calculator

Economic Calendar

Quotes

Forex Heatmap

Trading Info

CFD Trading

CFD Asset List

Trading Conditions

Trading Hours

Expiration Dates

Upcoming Trading Holidays

Weekly Expiration Rollover

Trading Features

Depth of Market
Learn

Learn to Trade

Glossary

Education Centre

Trading Basics

Video library

News & Analysis

news

Academy

Trader's clinic

Webinars

US Nonfarm Payrolls
Promo

Reward Hub

marketsClub

Welcome Bonus

Loyal Bonus

Referral Bonus

Swap-free Accounts
Partnership

Affiliation

IB
About

About Markets.com

Why markets.com

Global Offering

Our Group

Careers

Awards and Media

Help Support

FAQ

Help Centre

Contact Support

Complaints

Data & Security

Safety Online

Cookie Disclosure

Legal Pack

Legal Documents

Language

Stablecoin Market Shift: Flight to Safety Amid Market Turmoil

Wednesday Nov 26 2025 03:30

1 min

Table of Contents

1. Introduction: The Great Stablecoin Migration
2. USDC's Decline and Solana's Impact
3. USDe's Crisis and Sui's Data Blip
4. New Safe Havens: Compliance and Yield
5. Conclusion: A New Era for Stablecoins

Introduction: The Great Stablecoin Migration

The October 11th market crash triggered a wave of shifts within the stablecoin market. The total stablecoin market capitalization contracted from $308.7 billion to $302.8 billion, signaling the exit of nearly $6 billion from the market. This wasn't just a capital exodus; it was a race to safety.

USDC's Decline and Solana's Impact

USDC was among the biggest losers, with its market capitalization declining by $2.8 billion. This decline was largely attributed to a significant drop in USDC issuance on the Solana blockchain. Concurrently, the Total Value Locked (TVL) on Solana experienced a similar decrease, suggesting that investors were redeeming their stablecoins from the platform to de-risk.

USDe's Crisis and Sui's Data Blip

USDe also faced significant challenges, with its supply halving due to leveraged liquidations. This incident highlighted the structural vulnerabilities of algorithmic stablecoins in bearish market conditions. In a separate development, data initially showed a massive increase in stablecoin supply on the Sui blockchain, but this was later found to be an error.

New Safe Havens: Compliance and Yield

As capital fled high-risk areas, it gravitated towards safer and more functional assets. USDT solidified its dominance, while compliant stablecoins like PYUSD saw significant growth. This growth is attributed to easier fiat onramps and the relatively stable yields of PYUSD. Additionally, Real World Assets (RWAs) saw steady growth, indicating investors' preference for yields backed by tangible assets.

Conclusion: A New Era for Stablecoins

The $6 billion outflow from the stablecoin market signifies a turning point. The war is no longer about the speed of printing money, but about use cases, trust, and the quality of underlying assets. Stablecoin issuers must adapt to this new landscape to remain competitive.

Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

Written by:

Noah Lee

Stablecoin Market Shift: Flight to Safety Amid Market Turmoil

Introduction: The Great Stablecoin Migration

USDC's Decline and Solana's Impact

USDe's Crisis and Sui's Data Blip

New Safe Havens: Compliance and Yield

Conclusion: A New Era for Stablecoins

Latest news

Cookies

Strictly Necessary

Functionality Cookies

Targeting Cookies