Bitcoin’s 14% Q2 drop came as stablecoin market contracts for first time since 2023
Bitcoin fell 14% in Q2 below $60,000, alongside a rare contraction in stablecoin supply, signaling weaker crypto liquidity. Total stablecoin supply slipped to $312 billion, its first quarterly decline since Q3 2023, while stablecoins still rose to 14% of crypto market cap as capital exited the sector. The biggest weakness came from yield-bearing stablecoins, which dropped 15% after years of growth. Synthetic/DeFi-linked tokens like sUSDe and sUSDS lost ground, while RWA- and Treasury-backed products such as BUIDL, USYC, and USDY gained, showing a shift toward safer, regulated yield. Network data also showed uneven liquidity. Ethereum layer-2s and Ethereum base layer saw large stablecoin declines, while Tron and BNB Chain grew on payment activity. Trading volume fell 18% to $6.8 trillion, transaction counts hit a record quarterly drop, and organic transfer volume fell 5.5%. USDC stood out, with volume up 34% and a record 12.5% share of trading, helped by MiCA-driven pressure on USDT in Europe.
