Stablecoin supply falls $14.2B in 30 days, biggest drop since June 2022
In brief
- Glassnode: stablecoin supply fell $14.2 billion over a rolling 30-day window.
- Steepest stablecoin drawdown since June 2022, when supply fell by nearly $30 billion.
- USDT traded slightly below its $1 peg, according to TradingView data.
- CryptoQuant's Bitcoin demand measure fell 284,000 BTC over 30 days, the firm said.
How big is the drop?
The rolling 30-day contraction in stablecoin supply hit $14.2 billion this week, per Glassnode. That's larger than the $9.5 billion drop recorded when Bitcoin fell below $58,000 on July 1.
It's also the most pronounced drawdown since June 2022, when supply fell by nearly $30 billion.
Cointelegraph describes stablecoin liquidity as a key yardstick for gauging crypto market sentiment. Glassnode's interpretation of the shrinking supply is pretty direct:
“A shrinking supply means holders are redeeming stablecoins for dollars and taking that cash out of the market, which leaves less fuel for a rally,” Glassnode commented.
USDT slips under $1
USDT (the largest stablecoin by market cap) traded slightly below its $1 peg, according to TradingView data cited by Cointelegraph. Glassnode attributed that to the "same pressure" from investors rotating out of the stablecoin market.
The firm didn't treat the outflow as one-way. It said a return to growth in the 30-day change would be the first sign that new money is coming in.
This week, that metric was still pointing the other way.
Bitcoin demand gauges weaken
On Tuesday, CryptoQuant reported that its measure of Bitcoin demand fell by 284,000 BTC over 30 days. That's the steepest downturn since March 2025.
The Coinbase Premium Index (which measures the difference between Coinbase's BTC/USD price and Binance's BTC/USDT price) was still negative on Wednesday. The index fell to -0.27% on Oct. 29, its lowest level since November 2022.
CryptoQuant contributing analyst Amr Taha wrote at the time that the deep discount suggested weaker relative demand or greater selling pressure on Coinbase. Taken together with the stablecoin data, crypto market metrics continue to point to weakening demand, and neither Glassnode nor CryptoQuant has said when that'll change.
Frequently asked questions
Why does a falling stablecoin supply matter for crypto markets?
Glassnode said a shrinking stablecoin supply means holders are redeeming stablecoins for dollars and taking that cash out of the market. In the firm's view, that leaves less fuel for a rally. Cointelegraph describes stablecoin liquidity as a key yardstick for gauging crypto market sentiment.
How does the $14.2 billion stablecoin drop compare with past declines?
Glassnode data shows the $14.2 billion 30-day contraction was larger than the $9.5 billion drop recorded when Bitcoin fell below $58,000 on July 1. It's the most pronounced drawdown since June 2022, when stablecoin supply fell by nearly $30 billion.
What would signal new money returning to the stablecoin market?
Glassnode said a return to growth in the 30-day change in stablecoin supply would be the first sign that new money is coming in. This week, the rolling 30-day figure was still a contraction of $14.2 billion.
