Stablecoin Supply Posts Largest 30-Day Drop Since June 2022

Total stablecoin supply has fallen by $14.2 billion over the past 30 days, according to Glassnode, marking the fastest contraction since June 2022. The decline comes as Bitcoin trades below its short-term holder cost basis and other indicators also point to capital leaving crypto markets. The latest contraction signals a meaningful reduction in on-chain dollar liquidity available across the market. Glassnode describes stablecoins as a major source of deployable capital for traders before they purchase crypto assets. A falling supply generally reflects redemptions back into fiat and capital moving out of the ecosystem. Tether was also trading slightly below $1 in the report’s latest snapshot. The data suggests less stablecoin liquidity is currently available to support renewed buying pressure , although shrinking supply alone does not determine future crypto prices.

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