Tether’s $USDT has lost about $6.6 billion in market capitalization over the past 60 days. The decline is faster than the contraction that followed the FTX collapse—a comparison the crypto industry is unlikely to welcome revisiting.
As of November 7-8, 2026, the world’s largest stablecoin had a market cap of about $177 billion.
How fast the money is leaving
The research estimates the decline over 60 days at roughly $6.6 billion to $6.8 billion, with most of the drop coming late in the period.
$USDT supply fell steeply in late October. In the week ending November 7, supply declined by $3.1 billion, its largest weekly drop of 2026.
The decline extended beyond Tether. The market’s total stablecoin supply fell by $6.66 billion in the same week, its steepest drop of the year.
A wider view shows stablecoin supply down about $15 billion over 30 days by early November. The overall stablecoin market cap has fallen roughly $21 billion from its May 2026 peak.
DefiLlama reported the broader decline, describing it as a $7 billion contraction in market liquidity. Tether’s own attestation data also supports the figures.
The peg held, and that matters
On November 8, $USDT traded at around $0.9989, while rival USDC was near $0.99945. Neither token lost its dollar peg during the redemptions.
The outflows were processed at stable value, with no signs of panic selling. This suggests a controlled pattern of withdrawals rather than a crisis-driven rush for the exits.
Tether’s balance sheet provides some reassurance. Its Q3 2026 attestation, dated September 30, reported $191.5 billion in assets and $183.5 billion in liabilities.
That amounts to a reserve buffer of $7.95 billion. Treasury bills accounted for a substantial portion of the backing, totaling $132.4 billion.
The buffer is also larger than the $6.6 billion withdrawn over the past two months.
What the figures mean for traders and the market
Pay close attention to weekly supply data. The $3.1 billion drop in $USDT and the $6.66 billion fall in total stablecoin supply in the week ending November 7 were both 2026 records.
The peg is another key measure. If $USDT continues to trade near $0.9989 and redemptions are completed at stable value, the issue remains liquidity, not solvency.
Tether’s reserve buffer provides some protection against shocks. The $7.95 billion cushion reported at the end of Q3 is a figure the market will likely revisit when the next attestation is released.
Source: cryptobriefing.com. Adapted by NBTC.
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