Stablecoin Supply Contracts by $6.66 Billion in Biggest Weekly Decline This Year
Key Facts
Total stablecoin supply fell by $6.66 billion in the seven days ended November 7, to $292.31 billion, its biggest weekly decline in 2026, according to a GNcrypto report. The contraction included supply of USDT, the largest stablecoin, which fell by $3.10 billion to $177 billion over the same week. The figures came as total supply recorded daily declines for 10 consecutive days from October 29. The seven-day rolling change also remained negative for 29 consecutive days through November 7. That places the weekly decline within a broader trend of falling supply, without by itself establishing the cause of the contraction or confirming that funds were withdrawn from the market.
The decline was split between the market’s two largest stablecoins: USDC supply fell by $1.31 billion to $70.60 billion in the week ended November 7. USDT and USDC together accounted for $4.40 billion, or 66%, of the weekly decline in total stablecoin supply, according to GNcrypto. That means most of the decline recorded over the period was concentrated in the two coins, while the total decrease was $6.66 billion. The USDT level of $177 billion refers to the coin’s supply on November 7, not the total value of the stablecoin market. The figures therefore show two different measures: the movement of an individual coin and the movement of the broader market.
The overall contraction extended beyond the report’s one-week period: stablecoin supply fell by $15.03 billion in the 30 days ended November 7, compared with a level of $307.33 billion on October 8. Over a longer period, total supply peaked at $315.54 billion on May 17, and the November 7 level was $23.23 billion, or 7.36%, below that. For USDT specifically, the report said DefiLlama data showed $183.84 billion on September 30 and $176.997 billion on November 7. That represents a decline of $6.84 billion, or 3.87%, between the two dates. This comparison runs from the end of September to November 7 and differs from the one-week changes covered in the report.
DefiLlama data on November 10 showed total stablecoin market capitalization of $289.81 billion, down 1.62% over seven days and 4.57% over 30 days. On the same date, USDT’s market share was 60.81%. At the coin price level, USDT closed at 0.99855 against the dollar on November 8, according to EL7 daily data. That reading puts the price near the dollar level on that day, while a supply indicator shows changes in the quantity of tokens or their market value, depending on the measure used. The market value on November 10 differs from the total supply of $292.31 billion recorded on November 7 because the readings use different dates and sources.
Tether says authorized but unissued tokens held in the company’s treasury are excluded from circulating supply and market capitalization, and that redeemed tokens may be burned or remain in the treasury for later reissuance. A change in circulating supply therefore does not necessarily mean the same number of authorized tokens has disappeared; the company’s definition distinguishes circulating tokens from those held in its treasury. In its reserve report dated September 30, cash and cash equivalents and other short-term deposits accounted for 72.91% of reserves, with U.S. Treasury bills making up 88.01% of that category. Tether said it generated $4.5 billion in net operating profits between January and September, including $1.5 billion in the third quarter, mainly from U.S. Treasury bills and reverse repurchase agreements. Reuters also said Tether’s gold reserves backing USDT fell by 3.4 tonnes in the third quarter to 142.8 tonnes at the end of September, when the coin’s supply was about $180 billion, according to its report published on November 3.
In a broader context, the Bank for International Settlements warned on April 9 that stablecoin stability depends on whether they can be redeemed quickly and reliably at par. The bank linked their effect on markets to issuers’ reserve composition, noting that large redemptions could lead to sales of government bills or sudden withdrawals of bank deposits. Those warnings address redemption risks and reserve composition in general; they do not identify the cause of the decline in stablecoin supply recorded in November. According to Tether’s transparency page, circulating supply is usually updated daily, while reserve reports are typically published every three months. The latest reserve report shown on the page was dated September 30, 2026, placing daily supply data and periodic reserve data on different timelines.