Stablecoin supply contracted by $14.2 billion over the 30 days ending November 9, recording its most significant monthly decrease since June 2022, according to data provider Glassnode. The sharp downturn in stablecoin circulation has emerged as investors grapple with shifting market conditions and declining activity across crypto-linked products.
USDT market capitalization and stablecoin trends
Blockchain analytics firm CryptoQuant disclosed that Tether’s USDT market capitalization declined by $6.6 billion in the 60 days leading up to November 7. This reduction in USDT’s market value was more than twice the $3.2 billion contraction observed after crypto exchange FTX collapsed in late 2022.
Bitcoin traded around $71,500 on November 13 after briefly approaching $74,000 a day prior. Market participants are watching closely to see if dollar-pegged digital tokens resume growth, noting that shrinking stablecoin supply limits immediate on-chain buying power for digital assets.
Redemptions of stablecoins for US dollars lead to a reduced circulating supply, which may lower the amount of instantly available capital for crypto trades. Ownership transfers between traders, however, do not impact the total supply.
Glassnode compared the current contraction in stablecoins with the sharp decline that occurred after Terra’s algorithmic stablecoin failed in 2022. However, Glassnode emphasized that the present market conditions are not identical to those past events, even as both periods saw substantial reductions in stablecoin liquidity.
The Block’s research found that stablecoin supply reached just below $280 billion as of November 11, marking the lowest figure since September 2025. The decline remains smaller in comparison to the nearly $30 billion drop seen in June 2022.
Tether’s USDT and Circle’s USDC remain the largest stablecoins by market capitalization, each maintaining a target value of $1. Traders most often use these tokens to transfer funds on exchanges and to buy other cryptocurrencies without relying on banking channels for every transaction.
USDT comprised approximately 62.8% of total stablecoin supply, while USDC represented about 25.1%, according to The Block’s November 11 data. Gold-backed tokens collectively held a $5.61 billion market value, down from their $6.31 billion peak in February.
Redemptions and changes in user preferences can shift the stablecoin landscape over a short period. Analysts have noted that a declining pool of stablecoins could signal reduced demand or shifting risk appetites among investors, though not all stablecoin withdrawals correspond directly to outflows from crypto markets.
Mini dictionary: Glassnode is a blockchain analytics company specializing in on-chain data insights for crypto investors and institutions. CryptoQuant is another analytics platform focused on tracking digital asset flows and on-chain trends for the crypto sector.
| Stablecoin | Market share (%) | Market value (USD billions) |
|---|---|---|
| USDT | 62.8 | Not specified |
| USDC | 25.1 | Not specified |
| Gold-backed tokens | Not specified | 5.61 (Nov 2026), 6.31 (Feb 2026 peak) |
Bitcoin, Ethereum ETF outflows and holder activity
Over the same 30-day period, US spot Bitcoin ETFs recorded $1.6 billion in net outflows across 20 trading sessions. While this figure represents cumulative redemptions over the period, not every session experienced net withdrawals.
US spot Ethereum ETFs also experienced more than $1.8 billion in outflows over six weeks, according to The Block. These trends in exchange-traded crypto offerings indicate shifting risk sentiment among US-based institutional investors but do not directly cause changes in stablecoin supply.
CoinMarketCap’s Fear and Greed Index measured 26 points on November 11, reflecting a market climate of fear. Bitcoin controlled approximately 60.5% of total crypto market capitalization that day, highlighting its continued dominance despite market volatility.
Within the latest Glassnode data, wallets holding between 100 and 10,000 BTC showed accumulation behavior in the period through November 9, even as other groups continued to reduce their holdings.
Glassnode observed buy orders around the $68,000 to $72,500 price levels for Bitcoin on major exchanges including Binance and Coinbase on November 11. However, these bids are not locked and can be withdrawn by traders depending on market movements.
The blockchain analytics firm noted that most nearby long liquidation levels had already cleared as Bitcoin’s price fell. The largest modeled cluster for potential liquidations stood between $59,500 and $62,600, areas where leveraged traders could see forced closures depending on future volatility. These clusters do not constitute price predictions, but rather indicate zones of concentrated risk.
