Stablecoin supply fell by $14.2 billion over 30 days, the biggest drop since June 2022, according to Glassnode.
Key points:
- The total supply of stablecoins fell by $14.2 billion over the 30 days to Nov. 9, the largest 30-day drop since June 2022.
- Tether (USDT) is trading slightly below its US dollar peg.
- The Coinbase Premium Index remains negative after dropping to its lowest level in four years at the end of October.
Stablecoin supply drop most acute since June 2022
The rolling 30-day contraction in stablecoin supply hit $14.2 billion this week, more than the $9.5 billion drop seen as Bitcoin (BTC) fell below $58,000 on July 1. It also marks the most pronounced drawdown since June 2022, when supply fell by nearly $30 billion.
Selected stablecoin supply data. Source: Glassnode
Stablecoin liquidity is a key yardstick for gauging crypto market sentiment.
“A shrinking supply means holders are redeeming stablecoins for dollars and taking that…