Stablecoin supply falls $7.7B as volume hits $1.79T

Stablecoin market capitalization fell $7.7 billion in June 2026 even as adjusted transaction volume reached $1.79 trillion that month, data from Visa’s Allium-powered dashboard and public on-chain sources show.

DefiLlama reported total stablecoin capitalization at about $309.9 billion as of July 28, a 0.79% decline over 30 days. Tether (USDT) stood near $183.9 billion and Circle’s USDC near $73.7 billion. Visa’s adjusted June volume represents a 63% increase from May and a 125% gain year over year. The June dollar decline was the largest monthly drop since the 2022 Terra episode, but it equaled a 2.39% contraction and occurred without any depegging events or reported issuer distress.

Visa’s adjusted volume metric filters out activity identified as inorganic to reduce the effect of wash trading and automated inflation. Research from Standard Chartered estimated stablecoin turnover at about six turns per month, roughly double the frequency recorded two years earlier. Higher turnover means each dollar of supply is used in more transactions in a given month.

Market composition remained concentrated during June’s contraction. USDT and USDC together accounted for more than 80% of total supply, and public supply data indicate the June decline was spread across multiple issuers rather than focused on a single token.

One commonly cited destination for exiting stablecoin balances is tokenized U.S. Treasury products. RWA.xyz estimated tokenized Treasury holdings at about $16.2 billion in late July, with Circle’s USYC near $3 billion and BlackRock’s BUIDL about $2.64 billion. Corporates and funds can convert idle balances into tokenized Treasury funds and switch back to stablecoins close to settlement, which reduces standing stablecoin supply while leaving transaction volume intact.

Analysts and data providers note that aggregate public data do not trace individual fund flows. The growth of tokenized Treasury products alongside the drop in stablecoin supply is consistent with a rotation of capital but does not demonstrate a direct one-for-one transfer.

The regulatory environment continued to evolve. Implementing rules for the GENIUS Act remained incomplete after a July 18 statutory deadline. A joint customer identification proposal was open for comment until August 21, and the FDIC issued proposed reporting requirements on July 17. Several asset managers introduced reserve products aligned with the GENIUS framework for institutional use.

On the macro side, the Federal Reserve’s Federal Open Market Committee met July 28–29 after holding the federal funds rate at 3.50%–3.75% for several meetings. Changes in the interest-rate outlook alter the relative yields that affect decisions between holding tokenized Treasury products and stablecoins.

Reserve income for stablecoin issuers is tied to the amount of supply they hold as reserves rather than to transaction throughput. Aggregate figures show a concurrent fall in supply and rise in adjusted transaction volume in June 2026, while public data and regulatory filings continue to evolve.