The total reserve of cryptocurrency stablecoins is contracting at its highest velocity in over four years, running parallel to a stagnant market rebound.
An analysis published Wednesday by Glassnode revealed that prominent stablecoin circulation dropped by $14.2 billion across the preceding 30 days, marking the most substantial decrease since the crypto downturn of 2022. By way of context, the 30-day contraction in stablecoin liquidity approached $30 billion back in June 2022, roughly five months prior to bitcoin hitting its bear market trough of $15,500 that same November.
The aggregate stablecoin valuation now rests just beneath $280 billion, marking points not observed since September 2025.
“A declining supply indicates that participants are exchanging stablecoins back into fiat and removing that capital from the ecosystem, consequently reducing the momentum available for an upward surge,” Glassnode stated.
A distinct study released Tuesday by CryptoQuant highlighted the worsening liquidity situation of Tether’s USDT, the dominant force in the stablecoin sector. Its total market value diminished by $6.6 billion over the 60-day window ending November 7, exceeding double the $3.2 billion reduction recorded over a comparable timeframe in December 2022 following the implosion of the FTX trading platform.
USDT presently represents approximately 62.8% of the entire stablecoin market, trailed by Circle’s USDC at 25.1%, based on metrics provided by The Block.
Conversely, gold-pegged assets have maintained stability, boasting a collective market capitalization of $5.61 billion. That figure sits under the $6.31 billion record set in February when gold reached an all-time valuation of approximately $5,350 per troy ounce.
Glassnode noted that an eventual resurgence in stablecoin issuance will serve as the “initial indicator that fresh capital is entering the space.” At the same time, CryptoQuant suggested that a localized bitcoin floor could materialize before USDT availability turns positive once again.
Originally published at https://www.theblock.co/news/ecosystems/2026-11-11-stablecoin-supply-drops-14-2-billion-largest-contraction-since-2022-bear-market-437907.
