Stablecoin Market Capitalization Shrinks by Approximately $10 Billion Since May

The stablecoin market experienced its largest correction in June, with a total market capitalization decrease of $7.7 billion, marking the largest monthly decline since May 2022. Since its peak in May, the stablecoin market has shrunk by approximately $10 billion, representing a decline of about 3%. The market capitalization of Tether's USDT fell from around $190 billion in May to $184 billion, a decrease of about $6 billion; Circle's USDC dropped from a high of nearly $80 billion to about $73 billion, losing around $7 billion. Compared to the over 26% cumulative decline in the stablecoin market during the crypto winter of 2022, this round of adjustment is relatively mild. Data shows that from March 2022 to September 2023, the total market capitalization of major stablecoins decreased from about $166 billion to $122 billion, with market liquidity affected by multiple factors during this period. Despite market pressures, the competitive landscape of the stablecoin industry is changing, with more issuers entering the space as regulatory progress continues. The circulation of USDG issued by Paxos has exceeded $3.2 billion, while the circulation of USDGO launched by Anchorage Digital and Hong Kong's OSL Group has nearly doubled to $900 million. Wall Street institutions are optimistic about the long-term prospects of stablecoins, with Citigroup predicting that the global stablecoin market will reach $1.9 trillion by 2030, and Standard Chartered forecasting an increase to $2 trillion by 2028. Analysts point out that the growth in stablecoin supply is a significant driver of the bull market in the crypto space, and the current overall supply contraction may impact the sustained rise of crypto assets.

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