Stablecoin Market Shrinks to Smallest in More Than Two Years

PayPal Holdings Inc.’s widely touted introduction of its own stablecoin has done little to stop the contraction the of digital-asset sector that underpins the trading of most cryptocurrencies.

The total market capitalization of stablecoins — a type of digital currency whose value is pegged to another asset class such as fiat - dropped to $123.8 billion as of September, according to researcher CCData. That’s the least since August 2021. The sector was $137.9 billion in December.

Stablecoin volume traded on centralized exchanges such as Coinbase Global Inc. fell 28.4%, to $331 billion in September, the lowest monthly total ...