The cryptocurrency market is having trouble getting enough money to move around. A type of money called stablecoins is becoming much scarcer. This is the drop in stablecoin supply since the bad time in 2022. A report on Wednesday from Glassnode said that the amount of stablecoins fell by $14.2 billion over 30 days. Now the total is under $280 billion.
Stablecoin supply is shrinking fast.
Total supply fell $14.2B in 30 days, the fastest contraction since June 2022.
A turn back to growth would be the first sign of new money.
More on recent buyers, large wallets and bids below price in this week’s Week On-chain. https://t.co/k1mWO1Oiyu
— glassnode (@glassnode) November 11, 2026
This drop is the largest in 30 days since 2022. At that time, the supply of stablecoins went down $30 billion in June. After that, Bitcoin dropped to its lowest point during the downturn, around $15,500, in November of that year.
USDT Supply Decline Raises Market Concerns
The pressure on Tether’s USDT, the biggest stablecoin by market capitalization, is further highlighted by the most recent decline. The market capitalization of USDT fell by $6.6 billion over the 60 days that ended on November 7, according to CryptoQuant.
That drop was greater than the $3.2 billion reduction noted over a comparable time frame in December 2022, after the cryptocurrency exchange FTX collapsed.
The Block’s data indicate that USDT accounts for about 62.8% of the stablecoin supply, while USDC from Circle accounts for 25.1%. When combined, these resources significantly contribute to the liquidity of bitcoin trading.
Analysts Track USDT Supply For Recovery Signals
Shrinking stablecoin supply can mean investors are taking tokens and converting them into cash, which might take away funds that could be used to buy cryptocurrencies. Just looking at changes in supply doesn’t say for sure what will happen with prices next.
Glassnode noted that stablecoin supply is growing again and said it could be a sign that new money is entering the market. CryptoQuant, on the other hand, said Bitcoin might find a local bottom before USDT supply starts growing again.
Gold-backed tokens have stayed pretty steady. Their total value is now $5.61 billion, which’s less than the high of $6.31B in February.
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