Stablecoin market contraction

In early July, Tether was reported as the leading revenue‑generating stablecoin as the sector’s overall market capitalization fell by roughly $1.9 billion. By the end of the month, the contraction had deepened: total stablecoin market cap dropped about $10 billion to a six‑month low, with USDT falling from $190 billion to $184 billion and USDC from $80 billion to $74 billion. Analysts tied the outflows to the U.S. GENIUS Act, which prohibits yield‑generating activities for payment‑stablecoins, prompting investors to move capital into tokenized Treasury products now holding about $16 billion. Despite the decline in holdings, stablecoin transaction volumes hit a record $1.79 trillion in June, indicating sustained use for payments. The broader cryptocurrency market also retreated, with total market capitalization slipping to around $2.17 trillion and Bitcoin trading near $64,000.