Tether USDT, the world’s largest stablecoin pegged to the US dollar, is experiencing its strongest monthly supply reduction in years as major investors increase withdrawal activity, according to blockchain data.
Based on a Bloomberg report citing Artemis Analytics data, the circulating supply of USDT has decreased by approximately 1.5 billion USD so far in February, after a 1.2 billion USD decline in January. This puts USDT on its steepest downward trend in three years, since the collapse of the FTX cryptocurrency exchange in November 2022.
Previously, in December 2022, USDT’s supply had fallen by 2 billion USD following the collapse of FTX and its 150 subsidiaries, which caused significant shocks in the crypto industry.
Cryptocurrency Market Liquidity Shows Signs of Contraction
The recent decline in USDT supply may indicate shrinking liquidity in the crypto market. As the largest stablecoin, USDT plays a crucial role as a gateway for investors entering the crypto space. With a market capitalization of 183 billion USD, USDT currently accounts for about 71% of the total stablecoin market cap, according to CoinMarketCap data.
Tether USDT, Monthly Supply Change Rate, Monthly Summary | Source: Artemis Analytics, BloombergCointelegraph reached out to Tether for comment on the reasons behind the supply decrease in February but has not received a response as of publication.
Stablecoin Market Remains Stable in February
Despite the significant reduction in USDT supply, this does not necessarily mean the entire stablecoin market is in decline. According to data from DeFiLlama, the total market cap of stablecoins across all exchanges increased by 2.33% in February, rising from 300 billion USD to 307 billion USD.
Total Stablecoin Market Cap | Source: DeFiLlama While the two largest stablecoins, USDT and Circle’s USDC, decreased by 1.7% and 0.9% respectively, USD1—a stablecoin linked to the Trump family and issued by World Liberty Financial—saw an impressive 50% growth in market cap, reaching 5.1 billion USD as of Friday, according to DeFiLlama.
Diverging Trends: Whales Reduce Holdings, New Wallets Increase Purchases
Large investors, known as “whales,” are significantly reducing their USDT holdings. According to analytics platform Nansen, in the past week, 22 whale wallets sold a total of 69.9 million USD worth of USDT, with selling speed increasing 1.6 times compared to previous periods.
Additionally, top traders tracked under the “smart money” category have also become net sellers of USDT. However, a notable development is that new wallets created within the past 15 days have purchased approximately 591 million USD worth of USDT during the same period, according to Nansen data.
USDT on Ethereum, “God Mode” token chart, one-year | Source: Nansen These contrasting flows reflect a market landscape with clear polarization: while large investors are withdrawing or reallocating assets, new investors are actively entering, helping to maintain overall stablecoin supply stability.
Mr. Giáo
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Shiba Inu Records 658% Spot Flow Surge Amid Market Rebound
Key Insights
Shiba Inu spot flows surged 658% within 12 hours as inflows exceeded outflows, signaling renewed trader activity during a broader crypto market rebound.
Open interest climbed 9.39% to nearly $63 million as leveraged positions expanded, showing that derivatives traders increased e
CryptoFrontNews3h ago
New address withdraws 450 BTC from a certain CEX, worth 31.63 million USD
Gate News Report, March 11 — According to Lookonchain monitoring, a newly created address (bc1qmh...las6u) withdrew 450 BTC from a certain CEX, worth approximately $31.63 million.
GateNews6h ago
VanEck: Bitcoin mining companies are transitioning to AI infrastructure, with valuation potential undervaluation
VanEck Research Director Matthew Sigel pointed out that Bitcoin mining stocks are attractive to investors, as mining companies are shifting toward the AI market to enhance value. Core Scientific plans to sell Bitcoin assets to expand its AI business, and Riot Platforms expects to achieve a strategic transformation by 2025. Over the past 12 months, both Core and Riot stocks have increased by 90%, while MARA has fallen 35% due to rising costs. NODE ETF has risen over 30% since its launch.
GateNews6h ago
Two Prime Deposits 3,946 BTC Worth $274M to Ceffu Over Past Week
Gate News bot message, Two Prime deposited 3,946 BTC (valued at $274 million) to Ceffu over the past week. During the same period, Two Prime also withdrew $173 million from Ceffu. The transaction activity shows Two Prime moving large amounts of Bitcoin.
GateNews6h ago
A new address has withdrawn 8,209 ETH from a certain CEX, worth approximately 16.85 million US dollars.
Gate News Report: On March 11, a newly created address starting with 0xFB0f withdrew 8,209 ETH from a certain CEX, worth approximately $16.85 million.
GateNews6h ago
ETH 15-minute decline of 0.80%: On-chain large fund flows and DEX selling pressure resonate to trigger a downtrend
2026-03-11 15:00 to 2026-03-11 15:15 (UTC), ETH price briefly and rapidly declined within the range of 2042.35 to 2065.57 USDT, with a K-line return of -0.80% and an amplitude of 1.13%. Market volatility intensified during this period, with significantly increased attention, and short-term market pressure triggered market alertness.
The main driving force behind this anomaly is large-scale on-chain fund flows and sell pressure concentrated on decentralized exchanges (DEX). Monitoring data shows multiple large ETH transfers to trading platforms, suspected to involve institutions or whales.
GateNews7h ago
