The total market capitalization of stablecoins in circulation fell by $4.99 billion between November 1 and 7, dropping from $298.24 billion to $293.25 billion, according to DefiLlama. It subsequently declined to $289.79 billion, representing a 4.57% decrease over one month. Over the same period, Tether’s USDT fell 1.32% to $176.21 billion, while Circle’s USDC dropped 1.25% to $70.38 billion. On Ethereum, Circle burned a net $3.1 billion in USDC after accounting for new issuance, while the Sky Dollar’s supply lost $829 million in a single day. The contraction may indicate liquidity leaving the crypto market, but it could also result from redemptions, the conversion of excess liquidity into dollars or allocations to U.S. Treasury bills. U.S. spot Ether ETFs also recorded $365.3 million in net outflows during the week ending November 6.
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