TLDR

Table of Contents

  • CryptoQuant reports that USDT market capitalization contracted by $6.6 billion over 60 days.
  • CryptoQuant says the contraction exceeded twice the comparable December 2022 decline following FTX’s collapse.
  • DefiLlama recorded a $289.81 billion stablecoin market on November 10, down 4.57% over 30 days.
  • USDT retained approximately 60.81% of stablecoin market capitalization despite declining supply.
  • USDC market capitalization fell 3.76% over 30 days to approximately $70.38 billion.

CryptoQuant says Tether’s USDT market capitalization contracted by $6.6 billion over the past 60 days. The decline reportedly exceeded twice the comparable December 2022 contraction following FTX’s collapse.

Tether supply is shrinking faster than it did after FTX.

USDT market cap is down $6.6B in 60 days, more than double the December 2022 drop.

Stablecoin growth funded every rally this cycle. That fuel is draining. pic.twitter.com/WxQNDdwZER

— CryptoQuant.com (@cryptoquant_com) November 10, 2026

However, November 10 market data suggest this is more than a Tether-specific withdrawal. Circle’s USDC also lost supply, challenging the argument that traders simply switched between major stablecoins. According to DefiLlama, total stablecoin capitalization stood at $289.81 billion on November 10. It declined 4.57% over 30 days and 1.62% over seven days.

USDC Also Loses Supply

USDT accounted for approximately $176.23 billion, representing 60.81% of the tracked stablecoin market. Despite its dominant position, USDT’s capitalization fell 4.26% over the preceding month. USDC declined 3.76% during that period, leaving its market capitalization near $70.38 billion. Together, those changes indicate weakness across both major issuers, rather than an isolated Tether shift.

Ripple’s RLUSD gained 9.39% over 30 days, while Ethena’s USDe expanded 4.58%. Those gains demonstrate uneven demand across products. However, smaller tokens did not prevent the broader market capitalization from falling.

Supply Does Not Equal Buying

Stablecoins provide dollar-denominated settlement assets for cryptocurrency trading and on-chain transactions. Their circulating supply offers a liquidity signal, but it does not measure actual Bitcoin purchases. In an October 21 analysis, CryptoQuant contributor Darkfost documented declining exchange stablecoin reserves. Binance held $41.6 billion in tracked ERC-20 stablecoins at that time.

Exchange transfers and circulating supply measure different activities. Users can move existing tokens between exchanges and private wallets without changing total issuance. A November 6 Blockonomi report noted tentative improvement in exchange inflows. Those transfers did not establish renewed stablecoin issuance or confirm stronger market-wide buying demand.

Tether Reserves Remain Separate

Tether’s October 30 disclosure listed $191.5 billion in reserves as of September 30. It reported $183.5 billion in liabilities and approximately $7.95 billion in excess reserves. That report describes an earlier reserve position, not November’s token supply. Tether said USDT issuance remained near $184 billion through September.

DefiLlama’s newer $176.23 billion reading reflects a later market snapshot. Differences in reporting dates and measurement methods also deserve attention. DefiLlama quoted USDT close to $1 on November 10. Falling capitalization alone does not establish reserve shortfalls or a loss of its dollar peg.

Market participants can monitor net issuance, total stablecoin capitalization, and executed spot buying together. Recovering supply could improve potential buying capacity, but would not guarantee higher cryptocurrency prices.