Stablecoin total market cap saw its biggest month-long drawdown since the Terra collapse in June, but the long-term growth logic remains unchanged

Deep Tide TechFlow message. On July 12, according to CoinDesk, the stablecoin market saw the largest-scale pullback in years in June. That month, the total market value fell by $7.7 billion, setting the biggest single-month decline since the Terra-Luna collapse in May 2022. Since the May peak, the stablecoin market has shrunk by roughly $10 billion in total. Two major stablecoin issuers became the main drivers of this round of pullback: the USDT market cap issued by Tether fell from about $190 billion in May to $184 billion, down about $6 billion; Circle’s USDC dropped from a near-$80 billion high in March 2026 to about $73 billion, shrinking by about $7 billion.

However, compared with the cumulative decline of more than 26% in the stablecoin market during the 2022 crypto winter, this round of adjustment remains relatively mild. Wall Street institutions still look favorably on the long-term prospects for stablecoins. Citigroup previously projected that the global stablecoin market size would reach $1.9 trillion in 2030 under the base-case scenario, and could rise to $4 trillion under the optimistic scenario.