Tether's USDT Supply Shrinks by $4B as Crypto Demand Cools
Tether's USDT supply has been declining over the past two months, dropping by about $4 billion on a 60-day rolling basis. This decline may signal that investors are moving back into fiat or that speculative demand for stablecoins is weakening.
According to Cryptoquant data, USDT's supply fell by around $870 million in just 11 days, with the majority of this decline happening over the past month.
Despite this contraction, USDT still holds a significant share of the stablecoin market, accounting for about 60% of total stablecoins in circulation. However, analysts warn that a broad decline across major issuers could signal that capital is leaving digital-asset markets rather than waiting on the sidelines.
Tether's supply has been concentrated mainly on Tron and Ethereum networks, with each hosting roughly $90 billion of USDT, together accounting for about 97% of the token's circulating supply. This concentration raises questions about whether falling balances will drag down trading activity and liquidity.