Total stablecoin market cap posted its largest monthly drawdown since the Terra collapse in June, though its long-term growth logic remains unchanged.

The stablecoin market saw its largest correction in years in June, with total market capitalization shrinking by $77 billion that month, marking the biggest single-month decline since the May 2022 Terra-Luna collapse. Since its May peak, the stablecoin market has shed roughly $100 billion in total, with two major stablecoin issuers driving much of the adjustment: Tether’s USDT fell from around $190 billion in May to $184 billion, a $60 billion drop; Circle’s USDC retreated from a near-$80 billion peak in March 2023 to roughly $73 billion, a $70 billion decline. Still, the current correction remains mild compared to the over 26% cumulative drop in the stablecoin market during the 2022 crypto winter. Wall Street institutions remain bullish on stablecoins’ long-term outlook; Citigroup previously projected the global stablecoin market will reach $1.9 trillion by 2030 in its baseline scenario, and could rise to $4 trillion under an optimistic case.