Stablecoin market capitalization declined $10B from May peak, with USDT and USDC leading the retreat—the largest monthly drop since Terra's collapse.
DeFi & Yields ·
Stablecoin market capitalization contracted by approximately $10 billion from its May peak, with June accounting for $7.7 billion of that decline—the largest monthly drop in dollar terms since May 2022. Tether (USDT) and USD Coin (USDC) were the primary drivers, with USDT retreating from roughly $190 billion to $184 billion and USDC falling to around $73 billion.
The overall market pullback represented a 3% contraction in percentage terms, reflecting a modest correction relative to the dollar magnitude of withdrawals. The scale of the monthly decline marks the most significant retreat since the Terra ecosystem's collapse in 2022, though the percentage loss remained limited. The pullback follows a period of growth in the stablecoin sector and signals renewed outflows from the two largest dollar-pegged tokens.
What remains unclear is whether the contraction reflects user redemptions, regulatory concerns, or shifts in capital allocation toward other assets, and whether the momentum will stabilize or accelerate further in subsequent months.