Tether’s USDT Supply Contracts Amid Regulatory and Market Pressures
Tether’s USDT supply declined to $183.7 billion in February, a 1.7% drop from January—the steepest monthly reduction since the FTX collapse. Redemptions outpaced new issuances as European MiCA regulations and Bitcoin’s 23% year-to-date slump prompted shifts to alternatives like USDC.
The stablecoin’s $1 peg held firm, underscoring resilient market confidence in its reserve-backed structure. Investors appear to be reallocating capital amid broader crypto volatility, though USDT’s dominance persists despite supply contraction.