USDT Market Cap Plummets $4B Over Two Months Amid Cooling Market

The market capitalization of USDT has seen a significant decline over the past two months, dropping by around $4 billion. According to CryptoQuant data, this trend is evident in both the rolling change in stablecoin supply and the 30-day moving average (DMA) for this metric.

Onchain analyst Stacy Muur noted that 'this looks like a direct outflow of funds' as some investors are swapping stablecoins for fiat currencies or exiting the market entirely after Bitcoin's price fell from its 2025 peak. This is not unique to USDT, however, as Circle's USDC also saw a decline in supply over the same period.

The decline in USDT supply may be attributed to various factors, including capital rotation towards other assets offering higher yields or moving back into fiat currencies. Muur suggested that demand for stablecoins is declining due to cooling speculative activity in the market.