Tether’s USDT is on track for its sharpest monthly supply contraction since the 2022 collapse of FTX. The decline is driven by ongoing redemptions from large holders, which have intensified in recent weeks.
Analysts say the contraction signals broader post-FTX market stress and shifts in liquidity. It underscores how stablecoin supply can move in response to market conditions, potentially influencing trading dynamics across exchanges.
If redemptions persist, the pace of decline could shape expectations for funding liquidity and risk appetite. This may occur even as the broader crypto market navigates ongoing volatility.
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