Tether USDT Supply Drops by $1.5B in February, Largest Monthly Decline Since 2022

Tether’s USDT supply recorded a $1.5 billion drop in February, marking its largest monthly decline since the aftermath of the FTX collapse in December 2022. According to data from Bloomberg and Artemis Analytics, the circulating supply fell to approximately $183.7 billion as of February 19, down from a peak of $187 billion in early January. This contraction indicates that large-scale "whale" investors and "smart money" traders are consistently reducing their USDT holdings. Market analysts often view a decline in stablecoin supply as a reduction in the "dry powder" available to support major assets like Bitcoin and Ethereum. The trend suggests a potential shift in capital allocation and decreased trading conviction among institutional participants within the crypto ecosystem. This significant reduction marks a departure from the steady growth USDT has maintained over the past year.