Tether's USDT Supply Drops $4B in 60 Days Amid Weaker Speculative Demand

Tether's USDT stablecoin supply has seen a significant drop of around $4 billion over the past 60 days. According to Cryptoquant data, this decline includes an $870 million drop in the last 11 days. The decrease suggests that some investors are moving out of crypto and into fiat currency due to weaker speculative demand and changing stablecoin incentives.

Despite the contraction in supply, USDT still holds a dominant 60% share of the stablecoin market, mainly concentrated on Tron and Ethereum networks. The key question now is whether this supply contraction will lead to reduced trading activity and liquidity, indicating a broader cooling in crypto risk appetite rather than just a temporary reshuffle of digital dollars.