BlockBeats report: On February 25, the world’s largest stablecoin by market capitalization, Tether (USDT), saw its market cap decline by 0.8% this month to $183.61 billion, continuing the downward trend from January, when it fell approximately 1% from its all-time high of $186.84 billion, potentially marking its second consecutive monthly contraction. This is the first time since the collapse of TerraForm Labs in 2022 that USDT has recorded back-to-back monthly declines, signaling tightening market liquidity.
Analysts note that stablecoins serve as the "liquidity fuel" of the crypto market, and a contraction in their supply typically indicates net capital outflows. Against this backdrop, sustained weak demand for U.S. spot Bitcoin ETFs has led market participants to adopt a more cautious stance on the sustainability of any rebound.
Regarding price, after Bitcoin found support near $60,000 on February 6, it failed to generate sustained momentum. Although it briefly rebounded above $70,000, it has since retreated and is currently trading in a range around $65,000.
Meanwhile, another major stablecoin, USD Coin (USDC), has rebounded from its January low of $70 billion to approximately $75 billion, but its overall growth this year has stagnated, indicating a synchronized slowdown in the expansion of major stablecoins. Market participants believe that if stablecoin supply fails to expand again, the broader cryptocurrency market will continue to face liquidity constraints in its recovery.