Tether Treasury burned $2.5 billion of USDT on Ethereum on July 7, marking the network’s largest single burn since February and reducing the stablecoin’s circulating supply by about 1.3%. The move appeared to reflect substantial customer redemptions rather than a deliberate deflationary step, with USDT holding close to its $1.00 peg during the transaction. CryptoQuant had already said the burn was second only to the $3.5 billion peak recorded on Feb. 10 and larger than the $2 billion burn seen on May 8. Separately, the analytics firm said Binance’s USDT balance on Tron fell to about $806 million, dropping below $1 billion for the first time since late December 2025, a sign markets are watching for fund flows and possible liquidity reallocation. Stablecoin burns, issuance and exchange balances are closely watched because they can signal redemption demand, shifts in trading liquidity and potential knock-on effects across crypto markets, including Bitcoin sentiment.