• Tether USDT supply set for biggest monthly decline since 2022 FTX collapse 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. • Cointelegraph in your social feed 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,accordingto Artemis Analytics data reported byBloomberg. • This puts USDT on track for its biggest monthly drop in three years, since the weeks following the collapse ofcryptocurrency exchange FTXin 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.
Article Summaries:
- Tether’s USDT, the world’s largest dollar‑pegged stablecoin, is on track for its steepest monthly supply decline in three years, falling roughly $1.5 billion in February after a $1.2 billion drop in January. The decline mirrors the $2 billion fall seen after the FTX collapse in late 2022 and may signal tightening liquidity in the crypto market, where USDT accounts for about 71 % of the stablecoin market cap. Despite the dip, total stablecoin market capitalization rose 2.33 % in February, with USDT and USDC down 1.7 % and 0.9 % respectively, while USD1 surged 50 %. Whale wallets sold $69.9 million of USDT, but new wallets bought $591 million, indicating a split between large holders and fresh entrants. Tether has not yet commented on the drivers of the February supply drop.
Sources: