Stablecoin Supply Contracts by $14.2 Billion in Fastest Decline Since June 2022
Key Facts
The supply of major stablecoins fell by $14.2 billion over the 30 days through November 11, 2026, its fastest contraction since June 2022, according to a Glassnode report published that day. The decline put supply just below $280 billion, a level not seen since September 2025, according to The Block. Glassnode said the contraction means holders are redeeming stablecoins for dollars and withdrawing cash from the market, leaving "less fuel for a market rally." The figure reflects a decline in available supply, but Glassnode's interpretation does not make every decrease conclusive evidence of net capital outflows from the cryptocurrency market. The contraction came as U.S. spot bitcoin funds recorded outflows, though the source did not establish a causal link between the two moves.
The supply contraction was concentrated largely in the two biggest dollar-pegged stablecoins. USDT and USDC supply fell by about $11 billion combined in the month before the report, according to The Block. USDT accounts for about 62.8% of total stablecoin supply, while USDC represents about 25.1%, according to data cited in the report. Those shares show that the two tokens make up most of the market affected by the latest contraction. Circle data showed 68.9 billion USDC in circulation on November 9, a snapshot of the token's level before the contraction report was published on November 11.
USDT's market capitalization fell by $6.6 billion in the 60 days through November 7, according to The Block. That decline was more than double the $3.2 billion drop over a comparable period in December 2022, after the collapse of FTX. The 60-day measure differs from the overall contraction figure calculated over 30 days, but highlights the scale of the decline in the largest stablecoin. In the broader market, cryptocurrencies fell to their lowest levels in more than two months on November 9, according to a Reuters report published via Investing.com. Bitcoin fell more than 2% to $73,708, its lowest price since August, the same report said.
By contrast, gold-backed stablecoins held up better than dollar-pegged tokens during the broader contraction. Their combined market value was $5.61 billion when The Block report was published, compared with a peak of $6.31 billion in February 2026. That meant they remained relatively steady during the period when the supply of major stablecoins contracted, but had not recovered their February peak. Their combined value remained far smaller than total stablecoin supply, which was just below $280 billion. The divergence highlights how a limited category of gold-backed tokens moved differently from the broader market trend, without changing the overall picture of contraction.
U.S. spot bitcoin funds recorded net outflows of $1.6 billion over the 20 sessions through November 9, according to Glassnode. This coincided with the contraction in stablecoin supply, while the Glassnode report links redemptions and cash withdrawals from the market as an explanation for the supply decline. In an earlier context, Coinbase Institutional said on October 23 that exchange-traded bitcoin funds had attracted about $6.4 billion since August, compared with $1.5 billion for corporate treasuries over the same period. The institution described the shift as a reversal in the roles of buyers compared with the first half of the year. These figures place changes in investor flows to funds and treasuries in the broader market context, but do not prove that they caused the decline in supply or prices.
Glassnode said renewed growth in stablecoin supply would be "the first sign of new money entering" the market. This comes as the Federal Reserve set November 30, 2026, as the deadline for public comments on two proposals for a regulatory framework for payment stablecoin issuers under its supervision pursuant to the GENIUS Act. The Fed announced the request for comments on September 24, according to its statement. The approaching regulatory deadline puts stablecoins among the developments to watch after the contraction report published on November 11. Glassnode's signal for tracking a change in the direction of supply is a return to growth, not merely stabilization at current levels.