Bitcoin dropped 14.2%, Ethereum 25.4%; stablecoins contracted for first time since 2023. Spot volumes fell 28%; prediction markets surged 48.7%. Hyperliquid HYPE entered top 10.
The crypto market's total capitalization fell 12.6%, or $304.8 billion, in the second quarter of 2026, closing at $2.1 trillion, according to CoinGecko's 2026 Q2 Crypto Industry Report. The drop marked the third straight quarterly decline and the lowest level since September 2024, roughly 52% below October 2025's peak.
Bitcoin dropped 14.2% over the quarter. Ethereum lost 25.4%. Average daily trading volume across the market declined 20.9% quarter-on-quarter to $93.1 billion.
April ranked among the year's strongest months before momentum reversed, CoinGecko noted. The steepest losses concentrated in June, after increased ETF outflows, a hawkish Federal Reserve stance, fluctuating US-Iran tensions, and a symbolic Bitcoin sale by Strategy.
The stablecoin sector contracted by $4.8 billion, or 1.6%, ending Q2 at $305.1 billion. That was its first quarterly decline since Q3 2023. Circle's USDC posted the sector's largest outflow, falling 4.8% to $73.5 billion. Tether's USDT held roughly steady, rising 0.2% to $184.4 billion and lifting its market share to 60%. Sky's USDS fell 16.4% and Ethena's USDe dropped 24.4%, a decline CoinGecko attributed to yield compression below the risk-free rate.
Spot trading volume on the top 10 centralized exchanges fell 27.9% to $1.95 trillion. It hit a monthly low of $619 billion in May before recovering to $695 billion in June. Binance retained a 38.7% market share. MEXC's volume more than halved, dropping it from second to seventh among exchanges. Perpetual futures volume fell 10%, from $14.1 trillion in Q1 to $12.7 trillion in Q2.
Prediction markets moved against the broader trend. Notional volume grew 48.7% to $113.8 billion, driven by major sporting events. Kalshi's share rose from 42.4% to 58.9%, while Polymarket's fell from 35.8% to 30.2%. Rothera, a joint venture between Robinhood and Susquehanna International Group launched in May, reached fourth place by June with $2.1 billion in volume.
Hyperliquid's HYPE token broke into the top 10 cryptocurrencies by market cap during the quarter, a move CoinGecko linked to new ETF products and a partnership with Coinbase.
Tokenized collectibles volume also climbed, rising to $406 million in June from $97 million in January. Collector Crypt captured 62.8% of that segment.
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