Tether (USDT) lost $6.6 billion in market capitalization over the past 60 days, marking its largest contraction recorded by CryptoQuant since 2022. The decline, which exceeds the $3.2 billion drop following the FTX collapse, is contributing to tighter liquidity across crypto markets. Over the same period, demand for Bitcoin (BTC) fell by approximately 284,000 units over 30 days, making a sustained rally harder without additional capital inflows into stablecoins. Project Faro has secured $270 million from 21 financial institutions, including Goldman Sachs, Citi, Santander, and Deutsche Bank, to launch a dollar-backed stablecoin in the first half of 2027. Tether and Circle still control roughly 85% of the market, so Project Faro will need real payment usage and deeper liquidity to establish a meaningful position.
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