The stablecoin market recorded its first quarterly contraction since Q3 2023, with total capitalization falling 1.6% to $305.1 billion in Q2 2026. USDC lost approximately $3.7 billion, a 4.8% decline, while USDT held steady at around $184.4 billion and now controls roughly 60% of the market. This supply contraction coincided with a historic high in adjusted transaction volume, which reached $1.79 trillion in June 2026 alone, up 63% month-over-month. New entrants like Paxos USDG surpassed $3.2 billion in supply against the backdrop of the GENIUS Act, the proposed US stablecoin regulatory framework.
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