Stablecoin settlements hit $1.79T in June

Allium reported that adjusted stablecoin transaction volume reached a record $1.79 trillion in June, a 63% increase from May and a 125% rise from June last year. Over the past two months, the combined market capitalization of Tether (USDT) and USD Coin (USDC) declined by nearly $11 billion. Total stablecoin market capitalization fell more than 2% in June, producing roughly $8 billion in outflows.

The Allium report described a shift in how stablecoins are used. Rather than serving primarily as on-chain liquidity for trading, stablecoins are increasingly used for cross-border payments, institutional transfers, decentralized finance applications and continuous global settlement. The report characterizes the data as indicating higher demand for settlement activity rather than liquidity provisioning inside crypto markets.

The change in usage patterns is affecting Layer 1 blockchains. As on-chain stablecoin activity grows, available liquidity on those networks expands, which can increase their appeal to institutional participants. The report highlighted Toncoin as an example: its native stablecoin supply rose about 8% in one week to more than $810 million, reflecting competition among Layer 1 networks to capture stablecoin flows.

June’s record settlement volume coincided with a broader risk-off tone across crypto markets. The overall market finished the month down more than 18%, the largest monthly capital outflow since February’s roughly 20% decline. The report noted a widening gap between rising settlement activity and shrinking market capitalizations for the top stablecoins.

Macro factors also aligned with these trends. The U.S. Dollar Index posted back-to-back monthly gains, rising about 2.25% in June, while several global currencies, including the Japanese yen, weakened to multi-decade lows. A stronger dollar can increase demand for dollar-pegged assets used in cross-border payments and settlement.

Allium flagged a divergence between activity and capital: record transaction volumes alongside falling USDT and USDC market caps point to reduced liquidity within the sector. The report warned that if stablecoin usage continues to outpace available liquidity, the imbalance could present risks for crypto markets entering the second half of the year.