Stablecoin market contracted by $7.7B in June, the first decline in four years and largest drop since Terra-Luna collapse.
DeFi & Yields ·
The stablecoin market contracted by $7.7 billion in June, its largest monthly decline since Terra's collapse in May 2022 and first contraction in four years, as market capitalization fell to roughly $300 billion. Despite the supply decline, stablecoins settled $1.79 trillion in adjusted transaction volume that month, an all-time record and 63% increase from May, suggesting the market shift reflects migration toward yield-bearing alternatives rather than weakening demand. The GENIUS Act, signed in July 2025, prohibited issuers from paying yield on payment stablecoins, redirecting idle balances into tokenized Treasury funds that grew to nearly $16 billion by June, while turnover velocity roughly doubled to six times monthly over two years.