WHY SHRINKING STABLECOIN SUPPLY ISN'T BEARISH THIS TIME

Summary from the TLDR Crypto newsletter

Stablecoin supply has fallen for three straight months, from a mid-May peak near $320B to roughly $307B (about 4% off the high), versus a 26% collapse during the 2022-23 bear's 17-month decline. The GENIUS Act's ban on payment stablecoin yield is pushing idle capital into tokenized Treasuries instead (BUIDL, USYC), which grew from $6.5B to nearly $16B in a year, 56% in the last six months alone, while onchain stablecoin transaction volume hit an all-time high of $1.8T in June, up 63% in a month. The shift resembles stablecoins moving from parking spots to settlement layers. For example, Binance's $1.84B in USYC is now used as off-exchange collateral on BNB Chain.