Stablecoin Paradox: Transaction Volume Hits Record Highs as Crypto Liquidity Dries Up
The crypto landscape is witnessing a massive divergence in capital efficiency: stablecoin transaction volume skyrocketed to a record $1.79 trillion in June. This surge, representing a 125% year-over-year increase, highlights how stablecoins are becoming the primary engine for onchain value transfer, even as the broader market faces liquidity constraints.
Despite the explosive transaction activity, the total supply of stablecoins in circulation saw a sharp contraction of $7.7 billion over the same four-week period. This marks the most significant monthly decline since the infamous TerraUSD collapse, signaling a tightening of available capital that could redefine market dynamics in the coming months.
Stablecoins are moving more money even as crypto’s cash pile gets smaller. According to Visa Onchain Analytics, adjusted stablecoin transaction volume reached a staggering record of $1.79 trillion in June, up 63% from May's $1.10 trillion and 125% higher than a year ago.
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