Stablecoin Market Cap Sees Largest Monthly Decline in Four Years in June, Trading Volume Hits Record High

The total market cap of stablecoins fell from approximately $300 billion in May to around $290 billion, with a monthly decline of $7.7 billion in June, marking the largest monthly drop since the Terra collapse in 2022. The market cap of USDT decreased from about $190 billion to $184 billion, while USDC dropped from $80 billion to $74 billion. During the same period, the adjusted trading volume reached $1.79 trillion, a historic high, with a month-on-month increase of 63% and a year-on-year increase of 125%. The decline in market cap is related to the GENIUS Act, which prohibits the payment of interest on stablecoin issuance, leading idle funds to shift towards tokenized treasury funds with yields of about 4%. The size of such funds has increased from $11 billion in March to nearly $16 billion, with Circle's USYC surpassing BlackRock's BUIDL, and JPMorgan's products experiencing an 87% monthly growth. The turnover rate of stablecoins is approximately six times per month, double that of two years ago, while Visa estimates a quarterly turnover rate of 13.56 times, compared to just 1.65 times for the US M1. In the first half of the year, the adjusted trading volume of USDC accounted for about 70%, while USDT accounted for around 25%. USDC's annual trading volume of $18.3 trillion exceeds USDT's $13.3 trillion. Citigroup predicts that the market cap of stablecoins could reach $1.9 trillion by 2030, provided that payments are driven by usage rather than speculative trading.

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