Overview
- Stablecoin supply has fallen about $10 billion since May, with a $7.7 billion drop in June that is the largest monthly dollar decline since May 2022.
- The pullback was concentrated at the two biggest issuers, with Tether’s USDT down roughly $6 billion and Circle’s USDC down about $7 billion.
- The fall is modest in percentage terms, roughly a 3% decline overall, and is much smaller than the roughly 26% contraction seen in the 2022 crypto bear market.
- On‑chain activity stayed strong: USDC posted record adjusted transaction volumes in June and Circle executed large mints on Solana, suggesting funds were reallocated into settlement and trading uses rather than fully exiting the system.
- Smaller regulated issuers such as Paxos’s USDG and Anchorage’s USDGO have grown balances, indicating rising competition that could shift liquidity toward bank‑linked stablecoins and alter how quickly supply rebounds.