ME News, July 12 (UTC+8): The stablecoin market saw its largest-scale pullback in years in June. Total market cap fell by $7.7 billion that month, marking the biggest month-over-month drop since the Terra-Luna collapse in May 2022. Since the May peak, the stablecoin market has cumulatively shrunk by about $10 billion, with the total size down roughly 3%. Among them, the two major stablecoin issuers became the main drivers of this round of correction. The market value of USDT issued by Tether has dropped from about $190 billion in May to $184 billion, a decrease of about $6 billion; USDC issued by Circle fell from a peak near $80 billion in March 2026 to about $73 billion, shrinking by about $7 billion. However, compared with the stablecoin market’s cumulative drawdown of more than 26% during the 2022 crypto winter, this round of adjustment is still relatively mild. Data show that from March 2022 to September 2023, the total market cap of major stablecoins had fallen from about $166 billion to $122 billion. During that period, the TerraUSD crash, the FTX bankruptcy, and multiple crypto lending firms’ failures severely damaged market liquidity. Despite overall market pressure, the competitive landscape in the stablecoin industry is changing. Driven by regulatory developments pushing stablecoins into payment and settlement use cases—such as the US 《GENIUS Act》—more issuers are starting to enter. The circulation size of USDG, issued by Paxos and supported by institutions such as Robinhood, has exceeded $3.2 billion, while USDGO launched by Anchorage Digital and Hong Kong’s OSL Group has also nearly doubled to $900 million. Wall Street institutions still remain optimistic about the long-term prospects for stablecoins. Citibank previously estimated that the global stablecoin market size would reach $1.9 trillion in the base scenario by 2030, and $4 trillion in the optimistic scenario; Standard Chartered Bank predicted that the stablecoin market size would grow to $2 trillion by 2028. Analysts noted that stablecoin supply growth has historically been one of the key drivers of crypto bull markets. With overall supply contracting now, on-chain incremental liquidity will decrease. If there is no new demand for funds to support it, the difficulty for crypto assets to keep rising may increase somewhat. (Source: PANews)

LUNA-3.72%

USDC-0.01%

USDG-0.02%

C0.74%

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Analysis: The total market cap of stablecoins has shrunk by about $10 billion from its May peak, but the market’s long-term growth trend has not changed

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