Stablecoin market capitalization fell by about $10 billion since reaching a record high in May, the largest monthly dollar decline since the TerraUSD collapse in May 2022. Total supply dropped to roughly $312 billion in June, a 2.4 % decline that equals about 3 % of the May peak. Tether’s USDT accounted for roughly $184 billion and Circle’s USDC about $73 billion, together holding close to 59 % of the market, indicating continued reliance on the two largest dollar‑backed tokens. Transaction volume remained high, reaching a record $1.78 trillion in June, with USDC processing about $1.21 trillion and USDT $573 billion. The decline coincided with outflows exceeding $4 billion from U.S. spot Bitcoin exchange‑traded funds in June, the worst monthly result since the ETFs launched, suggesting weakening institutional demand. Regulators are advancing the GENIUS Act, which establishes a federal framework for payment stablecoins, and are drafting rules on customer identification, sanctions, and reserve requirements; new reserve products from Fidelity and State Street have also been tracked. Analysts at Wincent described the pullback as a relatively small adjustment in what they view as a long‑term growth market, noting that the current contraction remains far below the 26 % decline observed during the 2022 bear market. Investors will watch July issuance and redemption data, exchange volumes, and ETF flows to determine whether demand is rebounding or continuing to weaken.