Tether Market Cap Drops for Second Consecutive Month, Signaling Stablecoin Pressure

Tether’s market cap declined 0.8% to $183.61B for a second straight month, highlighting renewed stress in the crypto sector as stablecoins cool and liquidity tightens.

Rich by Coin

2026-02-25

Tether’s market capitalization declined for the second consecutive month, slipping 0.8% to $183.61 billion this month. The drop continues January’s 1% decrease from an all-time high of $186.84 billion, signaling renewed stress in the crypto market since the TerraForm Labs collapse in 2022. The contraction underscores ongoing fragility among major stablecoins and broader liquidity concerns.

USDC, the leading stablecoin under U.S. regulation, also showed a slowdown in growth after rebounding to roughly $75 billion from January’s trough. While it remains more robust than Tether, the sector-wide recovery appears paused as new inflows fade and overall momentum stalls this year.

Tether (USDT), the largest stablecoin by market cap, continues to shrink, marking a second straight monthly decline and suggesting that a full market rebound may be limited. Stablecoins serve as the fuel in the crypto ecosystem; when that fuel runs dry, activity slows, and investors are watching this trend closely.