Stablecoin Supply Contracts by $14.2B in Sharpest 30-Day Drop Since 2022

Aggregate stablecoin supply contracted by $14.2 billion across the 30 days leading up to Nov. 9, marking the steepest rolling monthly withdrawal since June 2022 ¹. The drawdown exceeds the $9.5 billion reduction registered during the market decline on July 1 and reflects ongoing dollar redemptions by market participants, according to analytics provider Glassnode ¹.

Glassnode stated that a shrinking stablecoin pool indicates that holders are actively converting tokens back into fiat currency and removing capital from the digital asset ecosystem ¹. Tether ($USDT), the largest stablecoin by market capitalization, has been trading slightly below its $1 peg amid this persistent rotation out of the sector ¹. At the time of writing, USDT changed hands at $0.9988 as broader market sentiment sat in Fear territory.

Demand Metrics Signal Extended US Selling Pressure

Broader market indicators also show softening appetite across spot venues. Onchain analytics firm CryptoQuant reported that its 30-day measure of Bitcoin ($BTC) demand fell by 284,000 BTC on Tuesday, marking the sharpest downturn for the metric since March 2025 ¹. This sustained contraction comes after stablecoin payments jumped 45% to $482B through September despite flat supply.

Concurrently, the Coinbase Premium Index—which measures the price difference between Coinbase's BTC/USD market and Binance's BTC/USDT pair—remained negative on Wednesday ¹. The metric sank to -0.27% on Oct. 29, touching its lowest reading since November 2022 ¹. CryptoQuant contributing analyst Amr Taha stated that this deep discount indicates weaker relative demand and elevated selling activity on Coinbase, a principal venue for US-based trading ¹. Glassnode noted that a return to positive 30-day supply growth would serve as the initial signal of fresh capital entering the market ¹.