Stablecoin Market Shrinks by $14.8 Billion in a Month, Largest Drop Since June 2022

The U.S. dollar stablecoin market is undergoing its most severe contraction since June 2022, with total circulation falling to $289.07 billion as of November 12, a sharp decline of $14.86 billion from $303.93 billion 30 days earlier.

The total has now retreated to levels last seen in September 2025. This shrinkage was primarily driven by the two leading stablecoins.

Tether-issued USDT has a circulating supply of approximately $175.65 billion, down $8.31 billion in a single month. Circle Internet Corp. (CRCL.US)-issued USDC stands at about $69.89 billion, down $2.97 billion. Together, the two account for roughly 85% of the total stablecoin supply.

Data compiled by Woofun AI shows that tracing back to the peak of $312.85 billion on May 17, 2026, the current total has cumulatively decreased by approximately $23.8 billion.

The Block, citing a report from on-chain analytics firm CryptoQuant, noted that over the 60 days ending November 7, USDT's market capitalization fell by $6.6 billion — more than double the $3.2 billion decline seen in the same period after the FTX collapse in December 2022.

Market institutions hold differing interpretations of the supply contraction. Glassnode told The Block that a shrinking supply means holders are redeeming stablecoins for dollars and withdrawing from the market, reducing the fuel that drives rallies, and that a return to stablecoin supply growth is the first signal of new capital entering.

Conversely, CryptoQuant believes Bitcoin may form a阶段性 low before USDT supply turns positive. As of the morning of November 12 Beijing time, Bitcoin was quoted at approximately $73,700.

A previous on-chain news report in October noted that stablecoin supply has grown only 0.4% this year, while payment volumes have risen 45% year-over-year.

The rapid contraction in total stablecoin supply reflects tightening market liquidity and a significant decline in investor risk appetite. Although payment activity continues to grow at a high level, the pace of capital withdrawal far exceeds new supply, which may signal that the market still faces considerable selling pressure in its search for a bottom. Without fresh capital inflows going forward, the momentum for asset price rebounds may remain constrained.