The stablecoin market contracted by $7.7 billion in June to about $312 billion, the largest monthly decline in dollar terms since the May 2022 TerraUSD collapse, even as stablecoin transfer volume climbed to a record $1.79 trillion. The June pullback left total supply about $10 billion below its May peak, with USDT and USDC accounting for most of the decline, but on-chain usage kept expanding as institutions leaned further into regulated dollar tokens. Bitwise said stablecoins settled about 2.3 times Visa’s payment volume over the past year, while USDC handled about two-thirds of June transfer activity. The broader market remained weak: the Bitwise 10 Large Cap Crypto Index fell 15.4%, the second quarter was crypto’s third straight losing quarter, and spot Bitcoin exchange-traded funds logged their worst quarter of outflows. Even so, Ethereum transaction activity was about 13 times above the 2022 low, decentralized-finance value locked was up more than 60%, tokenized real-world assets rose 50.3% this year to $32.89 billion, and quarterly prediction-market volume reached a record $43.2 billion. Bitwise argued the market is being priced more like a bear phase even though industry fundamentals, institutional participation and on-chain settlement activity continue to strengthen.