Stablecoin supply shrinks about $6.7 billion in a week, the steepest drop of 2026 and the deepest since the Terra collapse in May 2022

The pool of stablecoins, most of them pegged to the dollar, is shrinking at its fastest pace in more than four years. DefiLlama's data shows total supply fell from about $298.96 billion on October 31 to about $292.31 billion on November 7, a drop of about $6.65 billion in a week. It is the largest seven-day decline since May 2022; the previous largest decline this year was about $4.1 billion in the week to February 1.

The decline built up day by day. Supply fell every day from October 29, the day of the Binance breach, to November 7, though BlockchainReporter notes that neither Tether nor Circle has tied the outflows to it. Supply is down about $15 billion from $307.33 billion on October 8 and about $23.2 billion from its peak of $315.54 billion in May.

Most of the decline came from the two largest coins. USDT fell about $3.1 billion to about $177 billion and USDC about $1.3 billion to about $70.6 billion, BlockchainReporter calculates from DefiLlama figures. Both stayed close to their $1 peg.

A shrinking supply means more tokens are being redeemed for dollars than are being issued. The week of May 2022 was far worse in proportion: supply then fell about 17%, against about 2% this week.