After months of steady expansion through 2025, stablecoin supply across the crypto market is now moving in the opposite direction. Ethereum-based stablecoins, which make up a large portion of crypto liquidity, have declined over the past week, signaling a potential shift in investor behavior and short-term market sentiment. One of the major drivers behind the drop is Tether’s Treasury burning $3 billion worth of USDT, effectively removing a massive chunk of liquidity from circulation. While token burns can serve different purposes, in this context it reflects falling demand for stablecoins, a sign that capital may be exiting the crypto ecosystem
The post Stablecoin Supply Begins To Shrink After Months Of Growth appeared first on The Merkle News.
