Stablecoin Supply Shrinks Amid Record-Breaking Transaction Volume
The stablecoin market experienced a rare phenomenon in June: its supply shrunk by $7.7 billion while adjusted transaction volume hit an all-time record of $1.79 trillion. This seems counterintuitive, but experts warn against reading too much into the decline in supply.
Crypto.news reported that market capitalization fell 2.39%, or about $7.7 billion, to $312 billion, its largest monthly dollar drop since Terra-Luna collapsed in May 2022. However, this decrease is not necessarily a cause for concern.
June was also the strongest month stablecoins have ever had on the transaction side, with adjusted volume up 63% from May and 125% from June 2025. This indicates that despite the decline in supply, usage of stablecoins actually increased.
The split between different stablecoins was not evenly shared. Circle's USDC accounted for about $1.21 trillion of June's adjusted volume, roughly 67% of the total, while Tether's USDT handled about $576 billion, or 32%. This is an uncomfortable trend for Tether, which still has a larger supply base but saw its activity led by its smaller rival.