The stablecoin market recorded its biggest monthly contraction since the Terra-Luna collapse, with total market capitalization falling by $7.7 billion in June, according to BlockBeats. Since the market’s peak in May, the sector has shrunk by about $10 billion, with declines in the two largest issuers accounting for much of the pullback. Tether’s USDT fell from roughly $190 billion in May to $184 billion, while Circle’s USDC dropped from a high near $80 billion in March 2026 to about $73 billion.
Even so, the latest retreat remains far smaller than the drawdown seen during the 2022 crypto winter, when the stablecoin market fell by more than 26% cumulatively. The report said Wall Street institutions still hold a constructive long-term view on the sector. Citi had previously projected that the global stablecoin market could reach $1.9 trillion by 2030 in its base-case scenario, with the figure rising to $4 trillion in a more optimistic case.
The stablecoin market logged its largest monthly decline since the May 2022 Terra-Luna collapse, with total market capitalization falling by $7.7 billion in June, BlockBeats reported on July 12.
Since its May peak, the market has contracted by about $10 billion. Two major issuers drove most of the pullback. Tether’s USDT market cap fell from roughly $190 billion in May to $184 billion, a drop of about $6 billion. Circle’s USDC declined from a March 2026 high of nearly $80 billion to about $73 billion, down roughly $7 billion.
The latest pullback remains milder than the 2022 downturn
Compared with the more than 26% cumulative decline seen during the 2022 crypto winter, the current adjustment is still relatively mild.
BlockBeats said Wall Street institutions continue to see long-term upside in stablecoins. Citi had previously estimated that the global stablecoin market could reach $1.9 trillion by 2030 in its base-case scenario, and as much as $4 trillion in a bullish scenario.
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