Tether’s USDT market capitalization fell by $6.6 billion over the past 60 days, according to a new analysis by the blockchain data firm CryptoQuant. This supply reduction surpassed twice the scale of USDT’s contraction in December 2022 that followed the collapse of the FTX exchange.
Stablecoin contraction as market-wide trend
Data as of November 10 suggests the outflows are not isolated to Tether alone. The circulating supply of Circle’s USDC, another major stablecoin, also declined over this period. This broad withdrawal challenges the idea that capital simply shifted between the largest stablecoins.
Analytics platform DefiLlama reported that the total stablecoin market capitalization stood at $289.81 billion on November 10, down 4.57% over the prior 30 days, and 1.62% lower compared to the previous seven days.
Stablecoin growth funded every rally during this cycle, and that fuel appears to be draining from the market, according to the CryptoQuant team.
Mini dictionary: DefiLlama is a data aggregator platform that tracks decentralized finance (DeFi) metrics, including stablecoin supplies, across major blockchains. It compiles real-time data on asset capitalization and trends in the crypto market.
| Stablecoin | Market Cap (Nov 10) | 30-Day Change | Share of Market |
|---|---|---|---|
| USDT | $176.23 billion | -4.26% | 60.81% |
| USDC | $70.38 billion | -3.76% | 24.28% |
| Total Stablecoins | $289.81 billion | -4.57% | 100% |
Mixed flows among smaller stablecoins
Other stablecoins showed diverging trends. Ripple’s RLUSD gained 9.39% over the same 30-day window, and Ethena’s USDe expanded by 4.58%. Still, these gains from smaller issuers did not offset the broader decline across the market.
USDT remained the largest stablecoin by market value, with approximately 60.81% of total supply, while USDC held a 24.28% market share.
Stablecoin supply and liquidity impact
Stablecoins play a central role as dollar-denominated assets on both centralized and decentralized platforms. Changes in their circulating supply can act as a barometer for trading liquidity and capital inflows, but do not necessarily indicate direct buying of cryptocurrencies such as Bitcoin.
A recent review by CryptoQuant’s contributing analyst Darkfost highlighted falling stablecoin reserves on exchanges since October, with Binance holding $41.6 billion in tracked ERC-20 stablecoins at that time.
Transfers between exchanges and private wallets, which regularly occur in this market, do not affect the total issued supply, so analyzing both circulating supply and net flow is essential to assess market liquidity.
Tether’s reserve disclosures and reporting timing
Tether’s disclosure on October 30 showed $191.5 billion in reserves as of September 30, reporting $183.5 billion in liabilities and $7.95 billion in excess reserves. These figures are based on a snapshot before the recent supply decrease, with Tether stating USDT issuance was near $184 billion at the end of September.
DefiLlama’s more recent report puts USDT’s market value at $176.23 billion as of November 10. The variations in supply and reserve data reflect differences in reporting dates and methodologies rather than reserve shortfalls or loss of dollar parity. At $1 per token, USDT continued to trade at its dollar peg on November 10 according to DefiLlama.
Market participants are advised to monitor stablecoin issuance, aggregate capitalization, and spot market activity as complementary signals. While a rebound in supply could strengthen liquidity, it would not automatically trigger higher cryptocurrency prices.
