Stablecoin Market Shrinks Amid Record Transaction Volume
The stablecoin market has experienced its first quarterly contraction in nearly three years, shrinking by 1.6% to reach $305.1B. This decline marks a significant departure from the prolonged growth streak that had seen the sector surpass $317B and approach an all-time high around April and May.
The contraction was largely driven by Circle's USDC, which fell by roughly 4.8%, or approximately $3.7B, to bring its total supply to around $73.5B. In contrast, Tether's USDT remained relatively stable at approximately $184.4B and even captured more market share, now accounting for around 60% of the total stablecoin supply.
Despite this decline in supply, adjusted stablecoin transaction volume hit a record high of $1.79T in June alone, representing a 63% increase month-over-month. This indicates that while the market may have shrunk, its usage and velocity continue to grow.