TheBlock
Major stablecoin supply fell $14.2 billion over 30 days, its largest contraction since the 2022 crypto bear market, Glassnode said in a Wednesday report. Total supply stands just below $280 billion, a level not seen since September 2025. Tether's USDT accounted for a separate $6.6 billion decline in market capitalization over the 60 days through Nov. 7, according to CryptoQuant.
Why it matters
Stablecoins are widely used to trade and hold value across crypto markets. Glassnode said shrinking supply reflects holders redeeming stablecoins for dollars and taking cash out of the market, leaving less fuel for a rally. It described a return to supply growth as the first sign that new money is coming in.
USDT accounts for roughly 62.8% of stablecoin supply, followed by Circle's USDC at 25.1%, according to The Block's data. USDT's $6.6 billion decline was more than twice its $3.2 billion drop over a similar period in December 2022, after the FTX collapse.
Market impact
The contraction comes alongside a stalled crypto market recovery. In June 2022, the 30-day decline in stablecoin supply nearly reached $30 billion, roughly five months before Bitcoin hit its bear market low of $15,500 that November.
CryptoQuant said a local Bitcoin bottom could form before USDT supply returns to growth. Gold-backed tokens have held steadier by comparison, with a combined market cap of $5.61 billion, below their $6.31 billion February peak.
Frequently asked questions
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Why does shrinking stablecoin supply matter for crypto markets?
Glassnode says holders redeeming stablecoins for dollars are taking cash out of the market, leaving less fuel for a rally.
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How much did USDT's market capitalization fall?
CryptoQuant said USDT's market capitalization fell $6.6 billion over the 60 days through Nov. 7, more than twice its $3.2 billion decline over a similar period in December 2022.
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What shares of stablecoin supply do USDT and USDC represent?
USDT accounts for roughly 62.8% of stablecoin supply, while USDC represents 25.1%, according to The Block's data.
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How does the current contraction compare with June 2022?
The 30-day stablecoin supply decline nearly reached $30 billion in June 2022. Bitcoin hit its bear market low of $15,500 roughly five months later.
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Can Bitcoin bottom before USDT supply grows again?
CryptoQuant said a local Bitcoin bottom could form before USDT supply returns to positive territory.
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