Stablecoin Supply Shrinks $14.2 Billion in 30 Days, Steepest Contraction Since 2022 Bear Market
Key Takeaways
- •Total stablecoin supply fell by $14.2 billion over 30 days, marking the sector's sharpest contraction since the 2022 cryptocurrency bear market.
- •Glassnode data shows total stablecoin supply at just below $280 billion, its lowest level since September 2025.
- •Tether's USDT and Circle's USDC accounted for nearly $11 billion of the decline, with USDT's market capitalisation dropping $6.6 billion over 60 days through November 7, more than twice the post-FTX decline per CryptoQuant.
- •USDT and USDC represent roughly 62.8% and 25.1% of total stablecoin supply respectively, so their issuance and redemption activity largely drives the sector-wide supply trend.
- •Glassnode said a return to stablecoin supply growth would be an early sign of fresh capital entering the market, noting the roughly $30 billion contraction in June 2022 preceded Bitcoin's bear-market low of around $15,500 by about five months.
The total supply of major stablecoins has fallen by $14.2 billion over the past 30 days, marking the steepest contraction in the sector since the 2022 cryptocurrency bear market, as liquidity continues to leave digital asset markets.
Stablecoins are digital tokens designed to maintain a stable value against a reference asset, most commonly the US dollar, and their aggregate supply is widely tracked as a measure of the capital readily available within the cryptocurrency market. Tokens are typically issued when users deposit dollars or equivalent reserves with the issuer, while redemptions occur when holders exchange tokens back for those underlying reserves, removing them from circulation.
Data from blockchain analytics firm Glassnode showed total stablecoin supply falling to just below $280 billion, its lowest level since September 2025. Tether's USDT and Circle's USDC, the two largest stablecoins by market value, accounted for nearly $11 billion of the decline.
According to CryptoQuant, USDT's market capitalisation alone fell by $6.6 billion over the 60 days through November 7, more than twice the $3.2 billion decline recorded following the collapse of the FTX exchange in December 2022.
USDT accounts for approximately 62.8% of total stablecoin supply, while USDC represents 25.1%, meaning the two assets together make up close to nine-tenths of the market. Both tokens are designed to track the value of the US dollar. With that much combined weight, the issuance and redemption activity of these two tokens largely sets the direction of the sector-wide supply trend.
The contraction suggests investors are redeeming stablecoins and withdrawing capital from crypto markets, reducing the pool of readily available liquidity that supports asset purchases and market recoveries.
Glassnode said a return to stablecoin supply growth would provide an early indication that fresh capital is entering the market. The previous major contraction, which approached $30 billion in June 2022, came about five months before Bitcoin reached its bear-market low of around $15,500.
Source: BitcoinKE
