USDT market capitalization shrinks for two consecutive months, and stagnant stablecoin growth may cast a shadow over the crypto market recovery

2026-02-25 09:05:59

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ChainCatcher reports that the world’s largest stablecoin by market value, Tether (USDT), has decreased in market cap by 0.8% this month to $183.61 billion, continuing a decline from its all-time high of $186.84 billion, a drop of about 1%. This marks the second consecutive month of contraction, the first time since the TerraForm Labs collapse in 2022 that such a streak has occurred, signaling tightening market liquidity.

Analysts note that stablecoins are the “liquidity fuel” of the crypto market, and a contraction in supply usually indicates net capital outflows. Against this backdrop, demand for US spot Bitcoin ETFs remains weak, leading to cautious market sentiment regarding a sustained rebound. In terms of price, Bitcoin has failed to generate sustained momentum since finding support around $60,000 on February 6. Although it briefly rebounded above $70,000, it has since retreated to around $65,000 and is currently fluctuating.

Meanwhile, another major stablecoin, USD Coin (USDC), has recovered from a low of $70 billion in January to about $75 billion, but overall growth this year has stagnated, indicating a slowdown in the expansion of major stablecoins. Market participants believe that if stablecoin supply cannot expand again, the broader crypto market’s recovery will still face liquidity constraints.

BTC-1.32%

USDC-0.01%

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