TL;DR

Tether (USDT) growth fell from $15 billion to $3.3 billion over 60 days, according to CryptoQuant, marking a clear slowdown in liquidity since late 2025.
The 60-day market cap change indicator remained in positive territory but reached its lowest level since November.
Tether Treasury burned 3 billion USDT.

USDT growth slowed sharply at the start of 2026, sending a clear signal about the state of liquidity in the crypto market. CryptoQuant data show that the increase in Tether’s market capitalization dropped from $15 billion to $3.3 billion over a 60-day period, a steep decline compared with the pace observed since September 2025.

The 60-day market cap change indicator remains positive but stands at its lowest level since November. In previous cycles, rapid USDT expansions coincided with sustained Bitcoin rallies, while similar slowdowns led to sideways phases or corrections. The same pattern is reappearing at the beginning of 2026, in a context of lower net stablecoin issuance.

USDT’s circulating supply showed a visible contraction, particularly on the Ethereum network. Over the past month, USDT’s market capitalization on Ethereum declined, and the token traded persistently below $1. According to CryptoQuant, Tether did not experience a depeg event, but rather a combined effect of reduced supply and capital outflows. Holders chose to redeem their positions instead of reallocating liquidity into other market assets.

Tether Burned Around 3 Billion USDT

A key data point was the burn of 3 billion USDT by Tether Treasury, the largest since 2023 and the first since May of last year. Burning occurs when investors redeem USDT for dollars, forcing those tokens to be removed from circulation. This reflected an increase in redemptions amid greater caution toward macroeconomic conditions.

The stablecoin market has remained flat near $308 billion in total market capitalization for the past two months. An acceleration in outflows could break that level and open a corrective phase in the market, given the direct relationship between stable liquidity and activity in risk assets.

At the same time, an atypical flow of institutional demand emerged. Iran’s central bank acquired approximately $507 million in USDT to bypass financial sanctions and contain pressure on the rial. This transaction did not alter the broader slowdown trend, but it introduced a geopolitical component into Tether’s dynamics

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Filed under: News - @ January 22, 2026 4:32 pm