USDT supply has fallen by about $4 billion over the past 60 days, including roughly $870 million in the latest 11 days, according to CryptoQuant. Analyst Stacy M. said the decline may reflect some investors redeeming stablecoins for fiat currency and pulling capital out of the crypto market, while shifts in stablecoin operating yields may also be contributing to the contraction. Futures trading volumes on major exchanges such as Binance and OKX have also dropped sharply from last year's peaks, adding to signs of reduced activity and softer liquidity conditions across digital-asset markets. The pullback is being watched as a signal for overall market liquidity and investor sentiment because stablecoin supply is often used as a proxy for deployable capital in crypto.