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Stablecoin Market Shrinks $10B on Equity Rotation

Total USD Stablecoin Market Cap Contracts $10B as Funds Rotate to Equities

Unverified — auto-generated summary, not yet reviewedInstitutional TransitionJul 5, 2026

The stablecoin market is contracting sharply as capital rotates to equities and USDC/USDT bifurcate into separate economies.

The total market capitalization of USD-denominated stablecoins declined by approximately $10 billion, with on-chain and market data indicating concurrent capital rotation into US equities. The contraction follows the all-time high in stablecoin circulation recorded in June 2026.

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