World Liberty Financial's USD1 stablecoin has shed over $400 million in market capitalization in recent weeks, with its market cap falling to approximately $4.02 billion from $4.43 billion on October 6—a decline of roughly 9.1%.
The drop reflects concentrated redemption activity across multiple blockchain networks. On Ethereum, the stablecoin experienced $184.60 million in net redemptions across 63 token burns between October 6 and October 15. BNB Chain recorded $200.43 million in redemptions across 12 burns, with nearly $200 million originating from a single unidentified address in batches of $30 million to $50 million.
World Liberty Financial's proof-of-reserves dashboard showed approximately $4.01 billion in reserves, consistent with the reported market cap figures. Despite the redemptions, USD1 maintained its dollar peg throughout the period, trading between $0.998 and $1.000, indicating no sustained depegging event.
The supply decline was not offset by activity on other networks. On Ethereum, more than 99% of redeemed tokens passed through a wallet labeled BitGo, USD1's current issuer and custodian. Transfers between Ethereum and BNB Chain totaled less than $1 million, suggesting the withdrawn supply was not simply shifted between networks. Solana's USD1 supply remained unchanged at approximately $1.42 billion during the period reviewed.
USD1's supply contraction on Ethereum outpaced other major stablecoins during the same period. Ethereum-based USD1 supply fell 11.45%, compared with declines of 4.93% for USDe, 2.18% for USDC, and 0.76% for circulating USDT.
