The stablecoin market has shrunk by 10 billion dollars in two months, with an overall decline of about 3%, far below the levels seen during the bear market in 2022

The total circulation of stablecoins has fallen by about $10 billion from the peak in May 2026 to about $312 billion, with a decrease of $7.7 billion in June alone, marking the largest single-month dollar decline since the Terra-Luna event in 2022. The supply of Tether USDT decreased from about $190 billion to about $184 billion, while Circle USDC fell from nearly $80 billion to about $73 billion. However, the overall decline is only about 3%, far lower than the over 26% contraction during the bear market from 2022 to 2023.

Market participants believe this fluctuation is a normal adjustment within a strong long-term growth trend, as the market value of stablecoins has doubled in two years. There was also a decline of about $9 billion from late 2025 to early 2026, followed by a return to historical highs. Positive factors include regulatory progress such as the GENIUS Act driving new competitors into the market, the circulation growth of regulated products like Global Dollar (USDG) under Paxos, and major financial institutions still expecting the stablecoin market to reach trillions of dollars by the end of this decade.