Overview
- CryptoQuant data show USDT’s circulating market cap has dropped about $4 billion over the past 60 days to roughly $183 billion, one of the steepest recent declines.
- The pullback was part of a wider move: total stablecoin supply fell by about $10 billion, and nearly $870 million of USDT disappeared in an 11‑day span reported in early August.
- Some analysts view deep USDT contractions as a sign that heavy selling may be ending, which could ease downward pressure on assets like Bitcoin if new buying arrives.
- Other commentators warn the decline could reflect redemptions into fiat and falling trader activity, a view supported by sharply lower futures volumes on major exchanges.
- Tether reports a $1.04 billion Q1 profit and an $8.23 billion reserve buffer, but market observers say future minting, exchange reserves, and ETF or fiat inflows will determine whether the contraction is temporary or structural.