Stablecoin supply fell by $14.2 billion over the 30 days to Nov. 11, the largest 30-day contraction since June 2022, according to Glassnode.
The drop exceeds the $9.5 billion decline recorded around July 1, when Bitcoin fell below $58,000. In June 2022, stablecoin supply fell by nearly $30 billion, Glassnode data showed.
Liquidity gauge points to weaker sentiment
Stablecoin liquidity is a key measure of crypto market sentiment. Glassnode said a shrinking supply means holders are redeeming stablecoins for dollars and taking that cash out of the market, leaving less fuel for a rally.
USDT, the largest stablecoin by market cap, was trading slightly below its $1 peg, according to TradingView. Glassnode attributed the move to the same pressure from investors rotating out of the stablecoin market. The analytics firm said a return to 30-day growth would be the first sign that new money is coming in.
Coinbase Premium remains negative
Other market metrics pointed to weakening demand as Bitcoin traded near 11-week lows. CryptoQuant reported that overall Bitcoin demand fell by 284,000 BTC over 30 days, the most pronounced downturn since March 2025.
The Coinbase Premium Index, which measures the difference between Coinbase's BTC/USD price and Binance's BTC/USDT price, remained negative on Wednesday. It fell to -0.27% on Oct. 29, its lowest level since November 2022. CryptoQuant contributing analyst Amr Taha wrote at the time that the unusually deep discount suggested weaker relative demand or greater selling pressure on Coinbase, a major venue for US-based trading activity.
