The global stablecoin market is entering a new phase of recalibration as the circulating supply of Tether’s USDT falls roughly 1.7% over the past month, the steepest contraction since the aftermath of the FTX collapse in late 2022. The drop, which pushed total circulation below $184 billion in January 2026, highlights shifting risk appetite across the digital asset ecosystem as traders reduce exposure and move capital back into traditional fiat. Market watchers say the contraction reflects a combination of macro pressure and structural changes within the crypto industry. As volatility rises and liquidity conditions tighten, stablecoin flows often act as
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