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

BlockBeats message, July 12: The stablecoin market saw its largest-scale pullback in recent years in June. The total market capitalization fell by $7.7 billion that month, marking the steepest single-month decline since the May 2022 Terra-Luna collapse. Since the May peak, the stablecoin market has shrunk by about $10 billion in total. Two major stablecoin issuers have become the main driving forces behind this round of pullback: the market value of USDT issued by Tether has dropped from about $190 billion in May to $184 billion, down about $6 billion; USDC issued by Circle has fallen from a near $80 billion high in March 2026 to about $73 billion, shrinking by about $7 billion.

However, compared with the stablecoin market’s cumulative drop of more than 26% during the 2022 crypto winter, the adjustment in this round is still relatively mild. Wall Street institutions remain optimistic about the long-term outlook for stablecoins. Citigroup previously projected that the global stablecoin market size would reach $1.9 trillion in 2030 under a baseline scenario, and could rise to $4 trillion under an optimistic scenario.