Tether’s USDT is nearing its largest monthly supply drop since the collapse of FTX, with whales and smart money traders continuing to reduce their USDT holdings.
Tether’s USDT, the world’s largest US dollar-pegged stablecoin, is heading for its steepest monthly supply decline in years as big holders step up redemptions, according to blockchain data.
The circulating supply of USDt (USDT) has fallen by about $1.5 billion so far in February, following a $1.2 billion decrease in January, according to Artemis Analytics data reported by Bloomberg. This puts USDT on track for its biggest monthly drop in three years, since the weeks following the collapse of cryptocurrency exchange FTX in November 2022.
The USDT supply logged a $2 billion decrease in December 2022 after the collapse of FTX and its 150 subsidiaries sent shockwaves through the crypto industry.