Stablecoin use grows via payments and transactions despite $16B market liquidity drop

PayPal USD (PYUSD) and USD Coin (USDC) are seeing increased user adoption and network activity even as overall stablecoin market liquidity has declined by about $16 billion in three months. PYUSD added 863 new wallets in one day, signaling growing real usage beyond speculation, while USDC's on-chain transaction volume surged 151% year over year, outpacing its 19% supply growth. This trend shows stablecoins are shifting from merely expanding supply to becoming essential for payments and settlements, highlighting a maturing market where transaction activity and utility matter more than just circulating liquidity.