Stablecoin Supply Falls $14.2 Billion in 30 Days, Biggest Drop Since June 2022: Glassnode
Key Takeaways
- •Stablecoin supply contracted by $14.2 billion over the 30 days to Nov. 9, the largest 30-day decline since June 2022, per Glassnode's weekly report.
- •The latest contraction surpassed the $9.5 billion drop recorded on July 1 and is comparable to the nearly $30 billion decline that followed the Terra ecosystem's May 2022 collapse.
- •Glassnode said the shrinking supply reflects holders redeeming stablecoins for dollars and withdrawing cash from the market, and that a return to 30-day growth would be the first sign of new capital arriving.
- •USDT, the largest stablecoin, continues to trade slightly below its $1 peg, a deviation Glassnode attributes to the same investor rotation out of the stablecoin market.
- •Demand indicators remain weak as Bitcoin trades near 11-week lows, with CryptoQuant reporting a 284,000 BTC drop in its 30-day demand measure and the Coinbase Premium Index at -0.27% on Oct. 29, its lowest level since November 2022.
The total supply of stablecoins contracted by $14.2 billion over the 30 days to Nov. 9, the largest 30-day decline since June 2022, according to Glassnode's latest weekly report.
Stablecoins are blockchain tokens pegged to fiat currencies such as the US dollar and serve as the main settlement medium for trading across crypto exchanges, which is why stablecoin liquidity — the dollar-denominated capital held within crypto markets — is a key yardstick for gauging market sentiment.
"A shrinking supply means holders are redeeming stablecoins for dollars and taking that cash out of the market, which leaves less fuel for a rally," Glassnode commented.
Most acute drawdown since June 2022
The rolling 30-day contraction in stablecoin supply hit $14.2 billion this week, exceeding the $9.5 billion drop recorded as Bitcoin (BTC) fell below $58,000 on July 1. It also marks the most pronounced drawdown since June 2022, when stablecoin supply fell by nearly $30 billion in the period following the May 2022 collapse of the Terra ecosystem, whose algorithmic stablecoin UST lost its dollar peg.
USDT, the largest stablecoin by market capitalization, continues to trade slightly below its $1 US dollar peg, according to TradingView data. Glassnode attributes the deviation to the "same pressure" from investors rotating out of the stablecoin market.
"Should the 30-day change turn back to growth, it would be the first sign that new money is coming in," it added — a signal the report frames as the first indication of returning capital.
Coinbase Premium stays negative after four-year low
Crypto market metrics continue to point to weakening demand as Bitcoin trades near 11-week lows.
Related: Bitcoin short-term holders send 47K BTC to exchanges at a loss.
On Tuesday, CryptoQuant reported that its measure of Bitcoin demand fell by 284,000 BTC over 30 days, the most pronounced downturn since March 2025.
The Coinbase Premium Index, which measures the gap between Coinbase's BTC/USD price and Binance's BTC/USDT price, was still negative on Wednesday, meaning BTC was trading at a discount to its Binance USDT price. The index fell to -0.27% on Oct. 29, its lowest level since November 2022, according to CryptoQuant data.
"This unusually deep discount suggests weaker relative demand or greater selling pressure on Coinbase, a major venue for US-based trading activity," CryptoQuant contributing analyst Amr Taha wrote at the time.
Source: Cointelegraph
