Stablecoin Liquidity Shrinks by $16B on Exchanges Amid Bear Market

The stablecoin market has seen a significant decline in reserves on cryptocurrency exchanges. According to data from CryptoQuant, the total amount of stablecoins on exchanges fell by $16 billion, or 20%, to approximately $64 billion.

This represents a drop from a peak of $80 billion reached in November 2025. The majority of this decline can be attributed to a decrease in USDT holdings, which account for more than $50 billion in current reserves.

Binance has emerged as the largest holder of stablecoins on exchanges, with its share rising from about 60% at the end of 2025 to 68.5% currently. Despite this increase, Binance's absolute volume of stablecoins has declined.