USDT Shrinks by $6.6 Billion in 60 Days, More Than Twice Its Post-FTX Decline

According to CryptoQuant, Tether’s stablecoin USDT’s market capitalization fell by $6.6 billion over the past 60 days, more than twice the decline in December 2022 following FTX’s collapse.

On-chain analytics platform CryptoQuant highlighted the contraction in USDT’s market capitalization in data shared on November 10. For USDT, which tracks the dollar, market capitalization is one of the key indicators reflecting the number of tokens in circulation.

What does the contraction in USDT mean for the crypto market?

CryptoQuant believes growth in stablecoin supply has supported crypto price gains during this cycle. According to the platform, the contraction in USDT points to a weakening of one of the sources of liquidity investors can use to buy crypto.

Not investment advice.