Stablecoin supply falls $14.2B in biggest 30-day drop since June 2022
Stablecoin supply fell by $14.2 billion over 30 days to November 11, the largest 30-day drop since June 2022, according to Glassnode.
The rolling 30-day contraction in stablecoin supply reached $14.2 billion this week, exceeding the $9.5 billion drop seen when Bitcoin fell below $58,000 on July 1. This marks the most pronounced drawdown since June 2022, when supply fell by nearly $30 billion.
Stablecoin liquidity serves as a key indicator for gauging crypto market sentiment. The current decline suggests investors are redeeming stablecoins for dollars and removing cash from the market, leaving less fuel for a potential rally.
Tether trades below peg
USDT, the largest stablecoin by market capitalization, continues to trade slightly below its $1 peg, according to TradingView data. Glassnode attributes this phenomenon to the same pressure from investors rotating out of the stablecoin market.
Should the 30-day change turn back to growth, it would be the first sign that new money is coming in.
Coinbase Premium remains negative
This unusually deep discount suggests weaker relative demand or greater selling pressure on Coinbase, a major venue for US-based trading activity.
Crypto market metrics continue to indicate weakening demand as Bitcoin trades near 11-week lows. The Coinbase Premium Index, which measures the price difference between Coinbase's BTC/USD and Binance's BTC/USDT, remained negative on Wednesday after dropping to -0.27% on October 29, its lowest level since November 2022.
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