Stablecoin Market Loses $7.7 Billion in Biggest Monthly Drop Since Terra Collapse

Highlights:

• Stablecoin market value fell by about $10 billion from May’s peak, marking its largest four-year decline.
• Adjusted stablecoin transaction volume reached a record $1.79 trillion in June, despite the decline in supply.
• USDC led adjusted transaction activity, while USDT remained the largest stablecoin by total circulating market value.

The global stablecoin market recorded its largest decline in four years, even as transaction activity reached a record high. According to a Forbes report published on July 27, stablecoin supply has fallen by about $10 billion since reaching its May peak. Meanwhile, adjusted transaction volume climbed to $1.79 trillion in June. The contrasting figures show that stablecoin supply and usage are moving in different directions. Less capital is being held in stablecoins, but the tokens already in circulation are moving across blockchain networks at a faster rate.

Stablecoin Market Shrinks $7.7 Billion in June, Biggest Drop Since Terra

The stablecoin market lost USD 7.7 billion in June, its largest monthly decline since the Terra-Luna collapse in May 2022, bringing total capitalization down roughly USD 10 billion from its May peak to… pic.twitter.com/wHciAEfs3T

— Wu Blockchain (@WuBlockchain) July 28, 2026

Stablecoin Supply Falls as USDT and USDC Decline

The total stablecoin market capitalization declined by $7.7 billion in June, falling to about $312 billion. The 2.4% monthly drop was the largest in dollar terms since the Terra-Luna collapse. The market has now lost roughly $10 billion from its May high. However, the decline remains limited compared with the 26% contraction recorded during the broader crypto market crisis in 2022.

Tether’s USDT accounted for a large part of the decline. Its circulating supply fell from about $190 billion in May to nearly $184 billion. Circle’s USDC also dropped from its March peak of almost $80 billion to around $73 billion.

The contraction suggests that some investors have moved capital out of stablecoins or converted it into other assets. Stablecoin supply often rises when traders keep funds available for crypto purchases, trading or decentralized finance activity. A decline can therefore reduce the amount of immediately available liquidity in the market. Still, supply alone does not show how actively stablecoins are being used.

June Stablecoins Transaction Volume Reaches $1.79 Trillion

Visa Onchain Analytics recorded $1.79 trillion in adjusted stablecoin transaction volume during June. The figure increased 63% from May and 125% compared with June last year. June’s total also moved above the previous monthly record of $1.78 trillion, which was set this February.

Visa’s adjusted figures remove activity linked to bots, repeated smart contract transfers and internal exchange movements. As a result, the data aims to provide a clearer picture of payments, settlements and transfers between users and institutions. USDC led the market with around 67% of adjusted transaction volume. It processed nearly $1.21 trillion during June. USDT accounted for about 32%, with roughly $576 billion in adjusted transfers.

Much of USDC’s activity took place on Solana and Base. Both networks support fast transfers and have attracted growing stablecoin payment and settlement activity.

USDT Leads Supply, but USDC Drives More Transactions

USDT remains the largest stablecoin by market capitalization and controls about 59% of total supply. However, USDC now leads adjusted transaction volume by a wide margin. The difference shows that the largest token by supply is not necessarily the most active in payments and transfers. As a result, transaction volume, network activity, and settlement demand are becoming more useful measures of stablecoin adoption.

The decline in market capitalization may point to weaker liquidity in some areas of the crypto market. However, record transaction volume shows that demand for stablecoin-based payments and blockchain settlement remains strong.