The circulating supply of USDT has declined by 6.6 billion dollars in 60 days

Tether’s USDT circulating supply has contracted by $6.6 billion over the past 60 days, a decline the report frames as significantly larger than the drawdown seen in 2022 after the collapse of FTX. The drop in the supply of the largest stablecoin points to net redemptions or reduced issuance, a signal traders often read as evidence of capital leaving crypto markets or of lower demand for dollar-pegged liquidity. The comparison with the post-FTX period matters because that episode was a stress test for stablecoin confidence, so a larger contraction now invites scrutiny of current market conditions. Watchers will focus on whether the decline continues or stabilizes, and on whether other stablecoins absorb the outflow or the broader market’s dollar liquidity keeps shrinking.