The stablecoin market experienced its largest single-month decline in June since the Terra collapse, but the long-term growth narrative remains unchanged.

Odaily Planet Daily reported that the stablecoin market saw its biggest pullback in recent years in June, with its total market capitalization decreasing by $7.7 billion, marking the largest single-month drop since the Terra-Luna collapse in May 2022. Cumulative contraction since the peak in May has reached approximately $10 billion. The two major stablecoin issuers were the primary drivers of this correction: Tether's USDT market cap fell from around $190 billion in May to $184 billion, a decrease of about $6 billion; Circle's USDC dropped from its high of nearly $80 billion in March 2022 to approximately $73 billion, a contraction of about $7 billion.

However, compared to the over 26% cumulative decline experienced by the stablecoin market during the 2022 crypto winter, this round of adjustment remains relatively moderate. Wall Street institutions remain bullish on the long-term prospects of stablecoins. Citigroup previously estimated that the global stablecoin market size could reach $1.9 trillion in a baseline scenario by 2030 and rise to $4 trillion in an optimistic scenario. (CoinDesk)