Stablecoin Supply Surpasses $250B Amid Regulatory Progress and Market Optimism: Binance Report

In June, cryptocurrency markets saw modest gains, with stablecoins emerging as the standout performers, according to Binance Research's latest report. While market conditions remained volatile, stablecoins became a key focus as their circulating supply surpassed $250 billion for the first time. The July 3 report highlighted several significant trends, most notably the stablecoin market reaching $253.7 billion following landmark regulatory developments in the U.S.

The passage of the Genius Act through the Senate provided a major boost to stablecoin adoption by establishing a formal regulatory framework, encouraging more institutional participation. Leading the market expansion was Circle's USDC, which accounted for 79% of net stablecoin issuance during June. This regulatory clarity also positively impacted broader market sentiment.

Despite geopolitical tensions between Israel and Iran causing market fluctuations, the total cryptocurrency market capitalization grew by 2.62% in June. Bitcoin notably outperformed altcoins, with its dominance ratio climbing to 65% - the highest level since early 2021. Public companies implementing Bitcoin treasury strategies achieved remarkable returns, with some seeing four-digit percentage gains. Japanese firm Metaplanet emerged as the top-performing Bitcoin-related stock, surpassing previous market leader MicroStrategy.

The report also noted robust ETF inflows, with Bitcoin and Ethereum ETFs attracting $4.5 billion and $1.16 billion respectively. However, the period also witnessed significant liquidation events, particularly around June 22 when escalating Middle East conflicts triggered the largest three-day liquidation since February. These developments highlight the growing divergence between short-term traders and long-term investors in the crypto space.