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Stablecoin Market Factor Analysis

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Is there a common force behind stablecoin supply changes? Principal components of daily market capitalization movements, tested against sampling noise.

As of September 8, 2026, one component exceeds the noise ceiling, by 1.1 percentage points of total variance, which is within one band-width of the edge. It currently loads most heavily on PYUSD (27% of the component).

Principal component analysis of daily market cap percent changes across the top 10 tracked stablecoins. Every component is tested against the sampling-noise band for 10 uncorrelated series over 503 days, 7.4% to 13.0% of total variance; components inside that band are consistent with pure noise.

One component exceeds the noise ceiling, by 1.1 percentage points of total variance — within one band-width of the edge. A reading this close to the threshold can be produced by an episode of unusual volatility in a subset of coins; persistence as the series lengthens is the test. It currently loads most heavily on PYUSD (27% of the component).

The spectrum and the band are recomputed daily as the series lengthens. This reading is consistent with the near-zero average pair correlation currently shown on the correlation page.

PC1
14.1% of total variance
PC2
12.1% of total variance
Noise Ceiling
13.0% 10 series, 503 days
Above the Band
1 of 10 components

Explained Variance per Component

10 components over 503 complete daily observations · updated daily at 15:40 UTC
ComponentExplained varianceAgainst the band
PC1 14.1% above
PC2 12.1% inside
PC3 10.9% inside
PC4 10.7% inside
PC5 10.0% inside
PC6 9.5% inside
PC7 9.1% inside
PC8 8.4% inside
PC9 8.3% inside
PC10 7.0% inside
The shaded band is the range 10 uncorrelated series of 503 observations would produce by sampling noise alone (7.4% to 13.0%). Components inside it are indistinguishable from no relationship. 1 of 10 components sit above it. Source: Stablecoin Beat, series pca · 2026-09-08.

Coin Loadings on the First Two Components

CoinPC1 loadingShare of PC1PC2 loading
PYUSD +0.52 27% +0.34
USDT +0.43 18% -0.38
USDC +0.42 18% -0.10
RLUSD +0.35 12% -0.33
USDG +0.34 11% +0.27
USDD +0.25 6% +0.11
USDS +0.23 5% -0.25
USDE +0.11 1% +0.55
USD1 -0.06 0% -0.32
DAI -0.01 0% -0.25
Ordered by absolute PC1 loading. Squared loadings sum to one across each component, so the share column reads as how much of PC1 each coin accounts for. A negative loading is set in wine; the sign is the measurement. Source: Stablecoin Beat, series pca · 2026-09-08.

PC1 Score Over Time

Each day's standardized market cap changes projected onto the first component: how much of that day's movement ran along the leading common direction. At 14.1% of total variance that direction accounts for little of what happens on any given day. Source: Stablecoin Beat, series pca · 2026-09-08.

Reading the Spectrum Against Noise

A market driven by one shared force concentrates variance in its first component; equity markets typically show a first component several times the noise threshold. Components inside the shaded band are statistically indistinguishable from what 10 independent series would produce by chance, so only components above it carry evidence of common structure. The band narrows as the observation window grows.

What the Spectrum Currently Shows

One component exceeds the noise ceiling, by 1.1 percentage points of total variance — within one band-width of the edge. A reading this close to the threshold can be produced by an episode of unusual volatility in a subset of coins; persistence as the series lengthens is the test. It currently loads most heavily on PYUSD (27% of the component).

Methodology

Standardization. Each coin’s return series is centered and scaled to unit variance before the decomposition, so the components describe co-movement rather than volume of movement. Without the scaling the first component goes to whichever coin has the largest percentage variance, regardless of whether anything else moves with it.

Matrix and coverage. Daily market capitalization percent changes for the top 10 coins by market capitalization. A day enters only when every coin has that day and the prior day, giving 503 complete observations; a coin with no variance over the window is dropped rather than divided by. Levels are not used, because they trend and a decomposition of trending series produces structure that is not there.

The noise band. The band is the Marchenko–Pastur bound for a correlation matrix of 10 uncorrelated series over 503 observations. Components within it are consistent with sampling noise; the band is recomputed daily from the actual matrix dimensions.

Updated daily at 15:40 UTC. See the methodology for data sources and coverage.

Frequently Asked Questions

How is the decomposition computed?

Each coin’s daily market cap percent changes are centered and scaled to unit variance, and the eigendecomposition runs on the resulting correlation matrix, so a coin contributes according to how it moves rather than how volatile it is. A day enters only when every coin in the set has that day and the prior day, and a coin with no variance over the window is dropped rather than divided by. The figures on this page are computed when the page is built, not in the browser.

Is there a market-wide factor driving stablecoin supplies?

On current data, essentially no, pending persistence. The one component above the ceiling clears it by 1.1 percentage points, less than the width of the noise band itself, so it is the kind of reading a volatility episode in a few coins can produce.

Why publish a result that finds nothing?

Because the absence is the finding. Whether stablecoins behave as one market or as many independent instruments matters for how concentration, contagion and substitution should be read, and this page measures which is currently true.

How would a change in market structure show up here?

The spectrum is recomputed daily and the noise band narrows as the series lengthens. A regime shift, toward or away from common movement, appears as components crossing the band boundary and staying across it; a single volatile episode appears as a crossing that fades once its window passes.

Cite as: Stablecoin Beat Research, “Stablecoin market factor analysis,” stablecoinbeat.com/charts/pca/, retrieved September 8, 2026.