Analyst says stablecoin market cap has entered a period of stagnation

The stablecoin market capitalization has effectively entered a period of stagnation due to factors including stricter regulations, Cointelegraph reported, citing Jimmy Xue, co-founder of the quantitative yield protocol Axis. Xue explained that more stringent regulatory frameworks in the U.S. and Europe have increased compliance costs, slowing the pace of stablecoin issuance. He also noted that higher real yields on U.S. Treasury bonds have created alternative options for generating returns beyond holding stablecoins. The report highlighted that the current stablecoin market cap is holding steady at around $310 billion, a stark contrast to the period from January 2024 to early 2025 when the circulating supply more than doubled.