The stablecoin market just posted its worst stretch since the Terra implosion of 2022. The numbers behind the drawdownThe stablecoin market peaked in May 2026 somewhere in the $300 billion to $316 billion range. By late July, total market cap had settled between $300 billion and $310 billion, a decline of roughly 3%. USDC declined from a March peak near $80 billion to roughly $74 billion over the same period. One of its key provisions: a prohibition on yields for payment stablecoins, treating them as payment instruments rather than investment vehicles.