The stablecoin market hit its largest monthly retreat since the Terra crash in June, but the long-term growth logic remains unchanged

The stablecoin market experienced its largest correction in recent years in June, with its total market value decreasing by US$7.7 billion that month, the largest monthly decline since the Terra-Luna crash in May 2022. Since its peak in May, the stablecoin market has shrunk by approximately US$10 billion, with two major stablecoin issuers becoming the main driving factors in this round of correction: the market value of the USDT issued by Tether has dropped from approximately US$190 billion in May to US$184 billion, a decrease of approximately US$6 billion; the USDC issued by Circle has fallen back from a high of nearly US$80 billion in March 2026 to approximately US$73 billion, a contraction of approximately US$7 billion. However, compared with the cumulative decline of more than 26% in the stablecoin market during the 2022 crypto winter, this round of adjustment is still relatively moderate. Wall Street institutions are still optimistic about the long-term prospects of stablecoin. Citi previously predicted that the size of the global stablecoin market will be at the benchmark in 2030. It reached US$1.9 trillion and could rise to US$4 trillion in an optimistic scenario.