The stablecoin market experienced a significant contraction this week, losing $1.925 billion in market capitalization. Key contributors to this decline were Stream Finance's XUSD and Stable Labs' USDX, both of which broke their $1 pegs. Ethena's USDe recorded the largest drop, decreasing by 7.91% to a market cap of $8.62 billion. Other stablecoins also faced declines, including Sky's DAI, which fell by 4.28%, and World Liberty Financial's USD1, which decreased by 3.53%. Despite these fluctuations, Tether's USDT maintained its position as the largest stablecoin, holding a 60.09% market share.