Tether's Stablecoin Supply Shrinks $4B in 60 Days Amid Weaker Crypto Demand

Tether's USDT stablecoin has seen its supply decline by approximately $4 billion over the past 60 days, according to Cryptoquant data.

This reduction in supply may be attributed to investors redeeming stablecoins for fiat currency following a decrease in speculative demand and changing incentives across the stablecoin market.

USDT still holds around 60% of the total stablecoin supply, but the shrinking supply could signal weaker crypto liquidity.

Tron hosts over $91.2 billion of USDT, with the next test being whether falling balances drag trading activity.