The stablecoin market experienced a significant outflow of $892 million following a breach at KelpDAO, reducing the total market value to $320.65 billion. Despite the drawdown, Tether's USDT strengthened its dominance, comprising 59.19% of the market with a market cap of $189.78 billion, marking a 1.55% increase over the past week. In contrast, Circle's USDC saw a decline of 1.01%, reducing its market cap by approximately $794 million. The breach led to a contraction in the total value locked (TVL) across decentralized finance (DeFi), impacting several protocols like Aave. Ethena's USDe was notably affected, with a 34.39% decrease, shedding over $2 billion to a market cap of $3.82 billion. Other stablecoins such as Paypal's PYUSD and USDG also faced declines, while World Liberty Financial's USD1 posted a 4.34% increase, highlighting a shift in capital towards more dominant issuers.