USDT Supply Shrinks $4B as Crypto Investors Cut Market

• USDT’s $4B supply drop suggests investors are keeping less capital in crypto.
• USDC is also shrinking, pointing to weaker stablecoin demand, not just rotation.
• Tron remains a stablecoin growth leader, adding billions despite broader weakness.

USDT’s supply has fallen sharply in recent weeks, raising questions about whether investors are pulling money from crypto markets.

Green Dot founder Stacy Muur pointed to the decline after CryptoQuant reported a $4 billion drop in USDT’s 60-day supply. “Wtf is happening to the USDT supply?” Muur wrote.

Muur said about $870 million in USDT supply disappeared over 11 days. The stablecoin’s 60-day change fell to minus $4 billion, while its market capitalization dropped to about $183 billion.

The decline comes as Bitcoin remains below its 2025 peak, potentially reducing the amount of capital investors keep in stablecoins.

Stablecoin Demand Weakens

Muur also pointed to yield as a possible factor behind changes in stablecoin flows. Investors can move stablecoin holdings into products such as USDC, Morpho and Aave to seek returns, changing where their capital is held.

Related: Gold Surges After CPI While Bitcoin Lags: Why Are Investors Treating Them Differently?

USDC supply has also declined, making it harder to argue that investors are simply moving money from USDT into another major stablecoin.

Tron Leads Stablecoin Growth

USDT remains heavily concentrated on Tron and Ethereum, which together account for about 97% of its total supply.

At the same time, some networks are seeing strong growth in stablecoin value. Token Terminal said Tron has added $10.8 billion to its stablecoin market capitalization this year. HyperEVM gained $5.2 billion, while X Layer added $1.7 billion.

Related: TRON Price Prediction: Can $2.1T USDT Activity Lift TRX?