Stablecoin Market Sees Record Transaction Volume Amidst Supply Decline

The stablecoin market experienced its largest monthly contraction since the Terra-Luna collapse in 2022, with a $7.7 billion drop in supply to around $312 billion by the end of June.

Despite this decline, transaction volume hit a record high of $1.79 trillion in June, up 63% from May and 125% above the same month a year earlier, according to Visa's Allium-powered dashboard.

The divergence between supply contraction and increased usage is particularly evident in the case of USDC, which processed approximately $1.21 trillion in transfers during June, more than double USDT's roughly $576 billion, despite having less than half of Tether's circulating supply.