Stablecoin Market Drops $10 Billion Since May 2026, USDT and USDC Lead Decline

According to RWA.xyz data, the stablecoin market contracted by $10 billion since May 2026, with $7.7 billion wiped out in June alone. Tether's USDT declined from $190 billion to roughly $184 billion, while Circle's USDC fell from nearly $80 billion in March to around $73 billion, marking the steepest pullback since 2023. The 3% contraction is significantly smaller than the more than 26% bear market decline in 2022.

On July 10, Circle received approval from the U.S. Office of the Comptroller of the Currency to operate as a trust bank, allowing it to manage USDC reserves directly without relying on third-party custodians. The OCC charter represents a regulatory milestone that is accelerating competition in the stablecoin market, with traditional financial firms and crypto-native companies increasingly seeking to issue their own stablecoins.