Tether's USDT supply has fallen by about $4 billion over the past 60 days, including $870 million in just the last 11 days. An analyst points to a mix of investors exiting into fiat and cooling speculative demand for stablecoins, while rival USDC's broader yield options may also play a role.
USDT Sheds $870M in 11 Days as Demand Weakens
Tether's USDT supply is shrinking after years of steady expansion, according to Cryptoquant data cited in the report. The stablecoin's 60-day rolling supply change stands at roughly negative $4 billion. About $870 million of that decline occurred over just the past 11 days.
USDT still dominates the stablecoin market, with around $184 billion in circulation and an estimated 60% share of total stablecoin supply. Even so, the contraction has raised questions about whether investors are pulling back from crypto altogether.
Analyst Stacy Muur said part of the move looks like a direct exit into fiat following bitcoin's retreat from its 2025 peak. According to Muur: "Some investors are redeeming stablecoins for fiat and leaving crypto entirely".
Yield Competition Is Only Part of the Story
Changing stablecoin economics may also be playing a role. USDC offers a broader rewards ecosystem through platforms such as Coinbase, while lending protocols including Morpho and Aave provide additional yield opportunities.
However, Muur noted that USDC supply has also fallen sharply, which weakens the idea that capital is simply rotating from Tether into Circle's stablecoin. She said the picture is a mix of factors: some capital chasing yield, some rotating back into fiat, and less demand for stablecoins as speculative activity cools. That distinction matters because stablecoins often serve as a proxy for deployable crypto liquidity, so a broad decline across major issuers can signal capital leaving digital-asset markets rather than sitting on the sidelines.
Tron and Ethereum Still Dominate USDT
Despite the pullback, USDT remains heavily concentrated on two networks. Tron and Ethereum each host roughly $90 billion of Tether, together accounting for about 97% of the token's circulating supply.
Tron has also led stablecoin growth this year, with its stablecoin market capitalization up by about $10.8 billion, ahead of HyperEVM's $5.2 billion and X Layer's $1.7 billion gains. Tether remains embedded in crypto payments, trading, and emerging-market dollar demand, but its aggregate supply is no longer expanding in a straight line.
Source: Bitcoin News
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