Stablecoin Market Capitalization Plunges $7.7 Billion in June

The stablecoin market experienced its sharpest monthly decline in nearly four years in June. Total stablecoin market capitalization fell by $7.7 billion, a record single-month drop since the Terra-Luna collapse in May 2022. Despite this sharp decline, the sector still managed to maintain growth in adjusted transaction volume, with a record $1.79 trillion traded in June alone.

According to CoinGecko's Q2 2026 Crypto Industry Report, total stablecoin market capitalization ended the quarter at $305.1 billion, down from its peak of around $317-322 billion in April and May. This marks the first quarterly contraction since Q3 2023.

The decline was not evenly distributed among issuers, with Circle's USDC absorbing most of the damage, falling by approximately $3.7 billion to bring its total supply to around $73.5 billion. Tether's USDT held comparatively steady at approximately $184.4 billion and captured more overall share.

The report highlights a structural shift in the stablecoin market, with circulating supply acting as working capital for active transactions rather than parked savings balances. This is reflected in the record transaction volume despite declining supply.