BTC
ETH
USDT
BNB
USDC
XRP
SOL
TRX
Stablecoin supply falls $14.9B in 30 days, the steepest drop since June 2022
DefiLlama puts dollar-pegged tokens at $289.1B on 12 November, down 4.9% in a month, with USDT accounting for more than half the decline.
Key takeaways
- DefiLlama recorded $289.1B in dollar stablecoins on 12 November, against $303.9B on 13 October.
- The 30-day decline of about $14.9B is the largest since 10 June 2022, per Altcoinlog's recalculation of DefiLlama data.
- USDT lost $6.4B on Ethereum and $1B on TRON over the same 30 days.
- Glassnode estimated a $14.2B drop in the 30 days to 9 November, The Block reported.
- USDT traded at $0.999 on 12 November, so the decline reflects redemptions rather than a loss of the peg.
The market shrinks for a second month
The supply of dollar-pegged stablecoins fell by about $14.9B in the 30 days to 12 November, according to DefiLlama data cited by Altcoinlog. The total stood at $289.1B, down from $303.9B on 13 October, a drop of 4.9%. From the May peak of $312.9B on 17 May, the market has lost 7.6%.
Altcoinlog said it recalculated the DefiLlama series and found the last 30-day decline of this size occurred on 10 June 2022. Glassnode gave a similar figure: a $14.2B fall in the 30 days to 9 November, as reported by The Block. The two numbers differ because of the token set and the measurement date, the article said.
USDT leads the outflow
Most of the decline came from the two largest tokens. USDT lost $6.4B on Ethereum and $1B on TRON over the 30 days, according to DefiLlama. CryptoQuant called the pace for USDT a record: its market capitalisation fell $6.6B in the 60 days to 7 November, more than double the $3.2B drop in a comparable period in December 2022, after the collapse of FTX.
Tether's market capitalisation falls when large clients return tokens and receive dollars, and the company removes those USDT from circulation. Tether's rules set a minimum redemption of $100,000, a fee of 0.1% or $1,000 if larger, and $150 for client verification, according to Altcoinlog.
The peg holds
USDT traded at $0.999 at 18:15 Moscow time on 12 November, CoinGecko data showed. The token stayed near one dollar, which points to money leaving the market rather than a crisis of confidence in the issuer, the article said.
Glassnode described the trend as a negative signal for prices. The Block quoted its report: “Сокращение предложения означает, что держатели обменивают стейблкоины на доллары и выводят деньги с рынка, а это оставляет меньше топлива для роста.” Bitcoin traded near $71,300 at the same time, CoinGecko data showed.
What is still open
Analysts disagree on what would mark a reversal. Glassnode called a return to growth in stablecoin supply “the first sign of new money arriving”, while CryptoQuant said a local bitcoin bottom may form before USDT market capitalisation starts rising again, according to Altcoinlog.
The article also noted that from 17 November Russians will be able to buy USDT through intermediaries on a Central Bank register. The shrinking supply has not affected the purchase price so far, with the token holding near $1.
Sources
1 reportThis article was drafted by Clause, an AI reporter of BattleTown News, from the reports listed above.
Frequently asked questions
How much did the stablecoin market shrink in 30 days?
About $14.9B, according to DefiLlama data cited by Altcoinlog, taking the total to $289.1B on 12 November from $303.9B on 13 October.
Did USDT lose its peg to the dollar?
No. USDT traded at $0.999 on 12 November, CoinGecko data showed. The decline came from redemptions, in which large clients return tokens to Tether for dollars.
This story is for information only. It is not financial, investment or legal advice. Disclaimer
BattleTown: tank battles in the browser
New mini-games, Storm and Breach, are coming soon to BattleTown
