CryptoQuant: USDT supply contraction is outpacing levels seen during the FTX collapse

CryptoQuant noted that the current contraction rate of USDT supply has surpassed that seen after the FTX collapse; over the past 60 days, USDT’s market capitalization has shrunk by $6.6 billion—more than double the decline observed during the same period in December 2022. The on-chain analytics platform further emphasized that, throughout this crypto market cycle, stablecoin supply expansion has long served as a critical funding engine driving market strength—but this core liquidity support is now steadily weakening.