Tether's USDT market capitalization decreased by nearly $1 billion over five days in mid-October 2026. Data from CryptoQuant indicates this contraction occurred as Bitcoin attempted to regain upward momentum.
Between early July and October 1, 2026, USDT balances across 19 major exchanges and lending platforms dropped by $4.6 billion. During the same period, these platforms saw an inflow of approximately $1.9 billion in USDC and RLUSD.
Bybit recorded the largest net outflow of USDT among the analyzed platforms, losing $1.66 billion while gaining $315 million in RLUSD. Overall USDT supply fell by about 0.4%, or $647 million, in September 2026.
By October 20, 2026, the total USDT supply reached approximately $183 billion, down from near $184 billion. Analysts suggest that the current growth of competing stablecoins is insufficient to fully offset the liquidity gap left by the reduction in USDT.
