The stablecoin market saw its first decline in total supply in four years in June 2026. Despite that, adjusted transaction volume reached a record high of $1.79 T.
“Stablecoin market capitalization no longer reflects how extensively they are used. Today, it’s far more important to track settlement volume and velocity,” said Zennon Kapron, founder of Kapronasia and a Forbes contributor.
Since its peak in May, the total stablecoin supply has fallen by about $10 B to $300 B. One reason was the U.S. GENIUS Act, which prohibits payment stablecoins from offering yield. As a result, excess liquidity has been shifting into tokenized money market funds and U.S. Treasuries, while digital dollars are increasingly being used solely for payments and settlements.
“A decline in stablecoin supply does not mean the market is weakening. Excess liquidity has simply moved into yield-bearing tokenized funds, while stablecoins themselves are increasingly being used exclusively for settlements,” Kapron said.
The shift is also reflected in rising velocity. According to Standard Chartered, each stablecoin is now used an average of about six times per month—nearly twice as often as it was two years ago. At the same time, USDC has taken the lead in settlement volume, although USDT remains the largest stablecoin by market capitalization.
After excluding internal transfers and trading activity, adjusted transaction volume reached $8.82 T in the first half of 2026. Actual payments still account for only a small share of that total, but corporate payments are the fastest-growing segment, including business-to-business settlements, payroll payments, and cross-border transfers.