Stablecoin Supply Falls $6.66 Billion in Biggest Weekly Decline Since 2022
Key Facts
Total stablecoin supply fell $6.66 billion in the seven days ended November 7, to $292.31 billion, its sharpest weekly decline in 2026, according to a report by GNcrypto. The report said the contraction was the largest since the week Terra’s UST stablecoin collapsed in May 2022. Daily declines continued for 10 consecutive days from October 29, while the seven-day rolling change remained negative for 29 consecutive days through November 7. The accelerating contraction places the week’s reading within a broader trend that began before that period. GNcrypto said: "It was the sharpest weekly decline in 2026, and the biggest contraction since the week Terra’s UST collapsed in May 2022."
Over the 30 days through November 7, supply fell $15.03 billion from $307.33 billion on October 8, according to GNcrypto. The comparison shows that the weekly decline came amid a month-long contraction, with the total recording daily declines since October 29. The $6.66 billion figure measures the seven days ended November 7, while the $15.03 billion figure covers the month ended on the same date. The seven-day rolling change was negative throughout the 29 days through November 7. These figures provide a measure of supply movements over different periods.
In trading, GNcrypto said neither USDT nor USDC lost its dollar peg during the period. USDT traded at about $0.99892, while USDC was at about $0.99945 on November 8, according to CoinGecko data cited in the report. The prices put both tokens close to the dollar on that date. The price reading is for November 8, after the weekly decline measurement period ended on November 7. The supply contraction thus coincided with both tokens trading close to their dollar pegs.
DefiLlama data on November 10 showed stablecoin market capitalization at $289.805 billion, down 1.62% over seven days, with USDT accounting for 60.81%. This is a later reading than November 7 and shows market capitalization on November 10, rather than the total supply reported by GNcrypto. In a broader context, Citizens Bank said stablecoin supply was about $295 billion at the end of the third quarter, roughly 8% below its May peak of about $322 billion. Quarterly transaction volume, by contrast, reached a record of nearly $889 billion in the third quarter, the bank said. That points to a divergence between supply movements and measures of transaction activity during the quarter.
In its third-quarter results report, published on November 4, Circle said average USDC in circulation was $73.3 billion, up 8% year over year. It added that on-chain USDC transaction volume reached $13.9 trillion during the quarter, up 49% from the same period a year earlier. Circle revenue and reserve income totaled $865 million, up 17% year over year, while reserve income alone fell 8% to $658 million. These figures reflect different measures from stablecoin supply in the week of November 7, covering USDC and the company’s third-quarter results. Circle says data on USDC reserves and issuance and redemption flows are published weekly, with an independent monthly attestation of reserve adequacy.
Tether said USDT issuance remained broadly stable at about $184 billion during the first nine months of 2026, despite market volatility. Over the same period, the company said it generated $4.5 billion in net operating profit, including $1.5 billion in the third quarter, adding that U.S. Treasury bills and reverse repurchase agreements provided most of its income. Tether’s transparency page distinguishes data on tokens in circulation, which the company says is typically published daily, from reserve reports, which are issued every three months. The publication cadence for circulation figures therefore differs from the frequency of reserve updates. The company’s performance and reserve figures relate to the periods it reported, while the supply decline reflects a weekly reading ending November 7.
On redemption, Federal Reserve Governor Michael Barr said stablecoin stability requires the ability to redeem them quickly at par under a wide range of conditions, including market stress. The general manager of the Bank for International Settlements also raised the question of whether par redemption can be guaranteed in all circumstances, saying entities that hold reserves primarily at central banks may attract large inflows from the banking sector during periods of stress. The comments address redemption conditions and the risks of flows during periods of pressure. The sources did not identify the cause of the weekly contraction recorded through November 7. Tether says information on tokens in circulation is typically published daily, while reserve reports are generally issued quarterly.