Stablecoin Supply Down $7.7B in June, Volume Hits $1.79T

The stablecoin market experienced its largest monthly contraction since the collapse of the Terra ecosystem in May 2022, shedding $7.7 billion in June 2026, according to market data. This brought the total market capitalization down to approximately $312 billion, a decline of roughly 3% from its peak in May. Despite the shrinking supply, on-chain transaction activity surged to a record high, indicating a significant divergence between market size and usage.

Data from Visa’s analytics platform showed adjusted transaction volume reached $1.79 trillion in June, a 63% increase from May and a 125% rise compared to June 2025. Circle’s USDC accounted for about $1.21 trillion of that volume, while Tether’s USDT processed roughly $576 billion. This occurred even though USDC’s circulating supply, at around $74 billion, is less than half that of USDT, which stood near $184 billion. Analysts note this points to a dramatic acceleration in stablecoin velocity, with each dollar now circulating approximately eight times faster than a typical U.S. bank deposit.

Market observers emphasize the June contraction is not comparable to the 2022 Terra crisis, which saw nearly $34 billion wiped from the...