The stablecoin market posted its sharpest monthly contraction in years in June, shedding $7.7 billion in total market value, according to CoinDesk. The drop marked the largest one-month decline since the Terra-Luna collapse in May 2022. Since the market’s peak in May, aggregate stablecoin supply has fallen by about $10 billion.
Two major issuers accounted for much of the retreat. Tether’s USDT market capitalization fell from about $190 billion in May to $184 billion, a decline of roughly $6 billion. Circle’s USDC, meanwhile, dropped from a peak near $80 billion in March 2026 to about $73 billion, down roughly $7 billion.
Even so, the current correction remains milder than the 2022 crypto winter, when the stablecoin market recorded a cumulative decline of more than 26%. CoinDesk said Wall Street institutions still hold a constructive long-term view on the sector. Citi previously projected the global stablecoin market could reach $1.9 trillion by 2030 in its base case, with a bullish scenario rising to $4 trillion.
The stablecoin market saw its largest pullback in years in June, with total market capitalization falling by $7.7 billion for the month, according to CoinDesk. It was the biggest monthly decline since the Terra-Luna collapse in May 2022.
Since the market peaked in May, the sector has contracted by about $10 billion in total. Two of the biggest issuers drove much of that decline.
Tether’s USDT fell from roughly $190 billion in market capitalization in May to $184 billion, a drop of about $6 billion. Circle’s USDC retreated from a peak near $80 billion in March 2026 to about $73 billion, a decrease of roughly $7 billion.
Still, the current adjustment is milder than the drawdown seen during the 2022 crypto winter, when the stablecoin market posted a cumulative decline of more than 26%. CoinDesk said Wall Street institutions continue to view the long-term outlook for stablecoins positively. Citi had previously projected that the global stablecoin market could reach $1.9 trillion by 2030 under its base-case scenario, and as much as $4 trillion in a more optimistic case.
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