Crypto: Tether Usdt Supply Set For Biggest Monthly Decline Since 2022 Ftx...
Tether’s USDT is nearing its largest monthly supply drop since the collapse of FTX, with whales and smart money traders continuing to reduce their USDT holdings.
Tether’s USDT, the world’s largest US dollar-pegged stablecoin, is heading for its steepest monthly supply decline in years as big holders step up redemptions, according to blockchain data.
The circulating supply of USDt (USDT) has fallen by about $1.5 billion so far in February, following a $1.2 billion decrease in January, according to Artemis Analytics data reported by Bloomberg. This puts USDT on track for its biggest monthly drop in three years, since the weeks following the collapse of cryptocurrency exchange FTX in November 2022.
The USDT supply logged a $2 billion decrease in December 2022 after the collapse of FTX and its 150 subsidiaries sent shockwaves through the crypto industry.
The current decline may signal a contraction in crypto market liquidity, as Tether’s USDT is the primary on-ramp for crypto investors. Its $183 billion market capitalization accounts for about 71% of the total stablecoin market, according to CoinMarketCap.
Cointelegraph reached out to Tether for comment on what is driving the February supply drop, but had not received a response by publication.
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The pullback in USDT has not translated into a broader contraction across dollar-linked stablecoins.
The total market capitalization of stablecoins across all exchanges has risen 2.33% so far in February, from $300 billion to $307 billion, according to DeFiLlama data.
While the two leading stablecoins, USDT and Circle’s USDC (USDC), decreased by 1.7% and 0.9%, respectively, the Trump-family-linked World Liberty Financial’s USD1 (USD1) stablecoin recorded a 50% increase in market capitalization over the past month and was valued at $5.1 billion as of Friday, according to DeFiLlama.
Source: CoinTelegraph
