Glassnode reports the sharpest 30-day decline in stablecoin supply in more than four years, as Tether and USDC redemptions reduce cryptocurrency market liquidity amid persistent Bitcoin ETF outflows. The global cryptocurrency market has experienced its largest monthly stablecoin supply contraction since the 2022 bear market, with approximately $14.2 billion disappearing from circulation over a 30-day period, according to blockchain analytics firm Glassnode. The findings, published on November 11, 2026, indicate that demand for dollar-pegged cryptocurrencies has weakened significantly as investors withdraw capital from digital asset markets. The contraction represents the steepest 30-day decline since June 2022, when stablecoin supply fell by nearly $30 billion during a broader cryptocurrency downturn.
Glassnode’s findings show that the decline has been concentrated in major stablecoins, particularly Tether’s USDT and Circle’s USDC, which collectively accounted for nearly $11 billion in reduced supply. The development coincides with sustained cryptocurrency market weakness, declining Bitcoin exchange-traded fund holdings and concerns about the availability of liquidity needed to support a sustained recovery.
Tether and USDC Drive Sharp Decline in Stablecoin Supply
Tether’s USDT accounted for the largest share of the contraction, with separate CryptoQuant research showing that its market capitalization declined by approximately $6.6 billion during the 60 days ending November 7. That reduction was more than twice the $3.2 billion decline recorded during a comparable period following the collapse of cryptocurrency exchange FTX in December 2022. USDT remains the dominant stablecoin, accounting for approximately 61% of the market, while Circle’s USDC represents roughly 24%, according to DefiLlama’s November data. DefiLlama independently reported that total stablecoin capitalization had fallen by approximately $14 billion over the preceding month, confirming the direction of Glassnode’s findings.
Its November 10 report placed aggregate market capitalization near $290 billion, with USDT accounting for more than half of the decline and USDC contributing approximately 20%. The contraction has also affected major blockchain networks. Ethereum’s stablecoin supply declined approximately 6% over the month, while Solana recorded an 8% reduction. However, blockchain activity has not declined uniformly. DefiLlama reported that monthly stablecoin transaction volumes exceeded $1 trillion throughout 2026, demonstrating continued payment and trading activity despite reduced circulating supply.
Bitcoin ETF Withdrawals Add to Market Liquidity Concerns
The stablecoin contraction comes as institutional cryptocurrency investment products experience sustained redemptions. According to Glassnode, U.S. spot Bitcoin ETFs recorded approximately $1.6 billion in net outflows over 20 trading sessions, reflecting weaker demand for regulated Bitcoin investment products. Bitcoin has also traded below the estimated $75,600 average acquisition price of short-term holders, a level analysts monitor when assessing investor profitability and potential selling pressure. Stablecoins are widely used as settlement assets and trading collateral across cryptocurrency markets. A declining circulating supply can indicate that redemptions are exceeding new issuance, reducing immediately available dollar-denominated liquidity.
However, lower stablecoin supply does not necessarily mean an equivalent amount has permanently exited the cryptocurrency ecosystem. Capital can move into bank deposits, other assets or different settlement arrangements. Glassnode identified renewed stablecoin issuance as one potential indicator of improving liquidity conditions, although it does not guarantee higher cryptocurrency prices. The latest contraction highlights a significant challenge for market recovery: sustained buying demand may be harder to maintain while stablecoin liquidity and institutional fund flows remain under pressure.
