The stable currency market has lost about $10 billion since it reached its historic high in May 2026. Total supply declined by $7.7 billion in June to approximately $312 billion, the largest monthly decline since the collapse of TerrausD in May 2022. This decrease represents about 2.4 per cent of the June supply, a decrease of about 3 per cent compared to the high point in May.

Reasons for declining supply of stable currency

Since May, the redemption of USDT and USDC has led to a decline in liquidity. Although the volume of transactions remained strong in June, with the expansion of monetized assets, the market contracted by 3 per cent. According to DefiLlama, the market is currently close to $31,223 million, of which Tether's USDT is about $18,415 million and the CIA is about $73,41 million. USDT continues to account for almost 59 per cent of the market, increasing the dependence on these two largest dollar-backed coins in this area.

Reduced supply of USDT and USDC

USDT fell from about $190 billion in May, reducing its liquidity value by about $6 billion. The USDC fell from its peak of about $80 billion in March and lost nearly $7 billion in four months. These changes accounted for most of the retreat, although during the same period some of the smaller regulated distributors continued to expand.

Impact of liquidity contraction

The decline in the supply of stable coins may indicate that the user will redeem the coin to the bank's dollar or transfer the money out of the encrypted market. This may also reduce the United States dollar purchasing power of digital assets such as bitcoin, ephemerals, etc. In June, United States spot bitcoin exchange trading funds lost over $4 billion, the worst monthly outflow since their launch.

Growth of monetized assets

Contrary to the retreat of the stable currency, the real assets of monetization, with a value of over $30 billion in the chain during 2026, were driven mainly by monetized national debt products, funds and private credit. CoinDesk Research also recorded a 145 per cent increase in the amount of currencyized equity transactions in June, reaching a record $3.86 billion.

Regulation and the influence of new issuers

The United States GENIUS Act created a federal framework for the payment of stabilization currency and regulators are drafting rules for customer identification, sanctions and reserves. Cripto.news also tracks new reserve products designed by Fidelity and State Street for regulated issuers. Investors will follow up on the July release, foreclosure data, exchange turnover and ETF flows to see if demand has recovered or further weakened.