The market supply of the stablecoin USDT from Tether decreased by $1.5 billion in February, according to Bloomberg citing data from Artemis Analytics.
In January, the coin's market cap also fell by $1.2 billion.
If this trend continues, USDT may record its largest supply drop since December 2022. Following the collapse of the FTX exchange led by Sam Bankman-Fried, investors withdrew $2 billion from Tether's flagship asset.
The total market capitalization of the stablecoin segment rose from $302.9 billion to $304.6 billion in February. The supply of USDT's main competitor, USDC from Circle, increased by nearly 5% since the start of the month, reaching $75.7 billion.
Tether maintains its dominance in the segment with a market cap of approximately $183 billion, peaking at around $187 billion in early January. However, by the end of 2025, USDC surpassed USDT in terms of on-chain value transferred, with $17.3 trillion compared to $12.9 trillion.
The stablecoin sector received a significant boost in 2025 due to the supportive policies of U.S. President Donald Trump, who prioritized stablecoins. In July, he signed the Genius Act, establishing regulatory frameworks for dollar-pegged tokens.
At the end of January, Tether launched a federally regulated stablecoin, USAT, for the U.S. market.
According to CoinGecko, the asset's market cap remains stable at around $20 million. In comparison, the supply of the "stablecoin" USD1 launched by the Trump family in May 2025 has already surpassed $5 billion.
According to Blockstreet co-founder Kyle Klemmer, by the end of Trump's second term in 2028, USD1 is expected to dominate the segment, surpassing both USDT and USDC.
For reference, Tether's net profit exceeded $10 billion by the end of 2025. The company has accumulated a reserve of 148 tons of physical gold, according to Jefferies.