Stablecoin market capitalization fell by $7.7 billion in June, marking its largest monthly decline since the Terra-Luna collapse. Despite lower supply, adjusted stablecoin transaction volume
The stablecoin market lost $7.7 billion in June, its largest monthly decline since the Terra-Luna collapse in May 2022. Total market capitalization also slipped about $10 billion from its May peak to roughly $300 billion. However, adjusted transaction volume climbed to a record $1.79 trillion during the same month, showing continued growth in settlement activity despite the lower circulating supply.
June's decline reduced the stablecoin market by about 3% from its May peak. That drop remained far smaller than the 26% contraction recorded during the 2022 Terra collapse.
Tether's USDT supply fell from about $190 billion in May to roughly $184 billion. Meanwhile, USDC declined from its March peak near $80 billion to approximately $74 billion.
According to trading firm Wincent's Paul Howard, the decline represented a relatively small pullback within the broader market. At the same time, adjusted transaction volume rose 63% from May and 125% from June last year, reaching a record $1.79 trillion.
The supply decline coincided with changes introduced under the GENIUS Act, signed in July 2025. The law prevents payment stablecoin issuers from offering yield, while the Office of the Comptroller of the Currency proposed extending similar restrictions to affiliated entities.
According to Marquette University's David Krause, investors instead shifted idle balances into tokenized Treasury funds that generate returns. Tokenized Treasury assets have grown to nearly $16 billion, while Circle's USYC overtook BlackRock's BUIDL and JPMorgan's offering expanded 87% in one month.
Standard Chartered analyst Geoff Kendrick reported stablecoin turnover reached about six times each month, nearly double the pace seen two years ago. Meanwhile, Visa measured stablecoin velocity at 13.56 per quarter compared with 1.65 for U.S. M1 money supply.
USDC also processed larger settlement volumes than USDT despite its smaller supply. During the first half of 2026, USDC handled about 70% of adjusted transaction volume, while USDT accounted for roughly 25%.
Visa reported its stablecoin settlement business reached a $7 billion annualized run rate across nine blockchains. Mastercard also expanded support to six stablecoins operating across eight blockchain networks.
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