The supply of stablecoins—the crypto market's equivalent of cash—fell by $14.2 billion over the past 30 days, according to a report published on the 11th by blockchain analytics firm Glassnode. It marks the largest 30-day decline since June 2022, roughly four years and five months ago.
Stablecoins are tokens pegged to fiat currencies such as the U.S. dollar, and investors hold them as dry powder between trades. A shrinking supply means holders are redeeming tokens for dollars and moving that cash out of the market. Glassnode noted that "the liquidity needed to sustain a price rebound is thinning."
Total supply slipped just below $280 billion, its lowest level since September 2025. The bulk of the decline came from the two largest tokens—Tether's USDT and Circle's USDC—which together accounted for about $11 billion of the drop.
Note: Figures converted at ¥160 to the dollar. USDT decline is based on the 60 days through November 7.
According to CryptoQuant data, USDT's market capitalization fell $6.6 billion in the 60 days through November 7, more than double the $3.2 billion decline recorded over a comparable period in December 2022 after the collapse of exchange FTX. USDT accounts for about 62.8% of total supply and USDC for 25.1%, giving the two tokens nearly 90% of the market.
Gold-backed tokens, meanwhile, have been relatively stable at a market capitalization of $5.61 billion. They remain below the $6.31 billion peak reached in February, when gold hit an all-time high of about $5,350 per troy ounce, but the pullback has been limited.
In past cycles, supply contractions have preceded market bottoms. The 30-day decline in June 2022 approached $30 billion, and about five months later, in November of that year, Bitcoin fell to $15,500—the trough of that bear market.
Near-term supply and demand also look weak. A weekly report published by CryptoQuant on the 10th showed short-term holders' unrealized profit-and-loss ratio deteriorated from plus 33% on September 22 to minus 6% on November 9, a 39-point drop over seven weeks. The realized price—roughly the average acquisition cost for short-term holders—is about $79,500, while Bitcoin was trading at around $74,600 at the time of the analysis.
CryptoQuant notes that in shallow corrections during bull markets, the profit-and-loss ratio has tended to bottom out around minus 12%. That level corresponds to roughly $70,000, implying further downside from current prices. In past episodes, the ratio deteriorated to minus 18% in 2024, minus 19% in April 2025 and minus 23% in July 2026.
Market participants are focused on whether the pace of supply contraction will stop. Glassnode said a turn to positive in the 30-day change would be the first sign of fresh capital inflows. CryptoQuant, for its part, said Bitcoin may form a short-term low before USDT supply begins expanding again.
A shrinking stablecoin supply does not by itself signal further declines in Bitcoin or altcoin prices. Investor demand, interest rate levels and market confidence also shape direction. But when buying power within the market thins, selling pressure from existing holders tends to carry relatively more weight. Whether liquidity recovers and short-term holders' losses improve at the same time will likely be the deciding factor in calling a bottom.
