USDC Expands Market Cap by $584M in a Week, Fuels $1B Stablecoin Supply Increase

Stablecoin supply continues to climb, with USDC leading the latest leg higher. Circle's flagship token increased its market capitalization by about $584M over a seven-day period, accounting for most of a combined $1.0B weekly gain across USDC, Ethena's USDe, and PayPal's PYUSD. Total stablecoin supply is now estimated at $303B to $310B. USDC represents roughly $74B to $77B, or about 24% of the market. Tether's USDT remains dominant at around $184B, translating to approximately 60% market share. USDC's influence is more pronounced in activity metrics. Even with a smaller supply than USDT, USDC has captured about 60% to 70% of adjusted on-chain transaction volume across multiple windows in 2026. The token also posted a sharp acceleration in August 2026, when supply rose by $1.5B in a single week. This week's $584M increase is smaller, but aligns with what appears to be steady, repeatable minting demand rather than isolated spikes. The $1.0B combined weekly expansion was driven by three stablecoins with distinct designs and risk profiles. USDC follows a traditional reserve model, backed by cash and short-term U.S. Treasuries. Circle publishes regular attestations and has positioned the token around regulatory compliance. Ethena's USDe targets its dollar peg through a delta-neutral approach, pairing spot ETH holdings with short ETH futures. USDe's supply is currently estimated at $4B to $6B. PYUSD, PayPal's stablecoin issued on Paxos infrastructure, has seen meaningful supply contractions in recent months, with drawdowns ranging from 11% to 35% at different points. Its current supply is estimated at $2.7B to $3.9B.