Stablecoin Market Contracts $10B From May Peak, June Sees Largest Monthly Drop Since 2022

According to CoinDesk, the stablecoin market experienced a sharp contraction by July 12, with total market value declining approximately $10 billion from its May peak, representing a roughly 3% drop. In June alone, the market shed $7.7 billion—the largest monthly decline since Terra-Luna's collapse in May 2022. USDT, issued by Tether, fell from roughly $190 billion in May to $184 billion, while USDC, issued by Circle, dropped from nearly $80 billion in March to approximately $73 billion.

The current adjustment remains moderate compared to the 2022 crypto winter, when stablecoin market value plummeted over 26% from approximately $166 billion in March 2022 to $122 billion by September 2023, amid multiple crises including FTX's collapse and lending platform failures.