USDT could lose more this month than it did during the FTX collapse

In February, the market capitalization of USDT fell by almost $1.5 billion after a month of continuous growth and the crypto market’s decline in January. This is the steepest drop since December 2022 – a few weeks after the FTX collapse. Nevertheless, the overall supply of stablecoins increased: USDC +5%, and total transaction volume for 2025 rose by 72% to $33 trillion.

What happened to USDT
Metric February January Note Capitalization –$1.5 billion (decline) Largest drop in a month since December 2022 Total supply <184 m USD~187 m USD Peak at the start of January, then decline

According to *Artemis Analytics*, the total number of Tether (USDT) tokens in circulation decreased by almost $1.5 billion. This occurred after the crypto market’s fall in January and became the largest monthly drop since December 2022.

Overall stablecoin market condition
Stablecoin Supply (February) Change vs previous month USDT<184 m USD Decline after January peak USDC75.7 bn USD+5% (growth)

Total supply of all stablecoins rose to $304.6 billion, higher than the end‑January figure of $302.9 billion.

Factors affecting the market
1. The crypto market overall

- The decline in cryptocurrencies in January and after the FTX collapse led to outflows from stablecoins.

2. US policy

- Last year President Donald Trump declared stablecoins a “national priority,” accelerating growth of USDT and its competitors.

- However, the mass sell‑off of cryptocurrencies that began in October 2025 reduced overall market capitalization by $2 trillion.

3. Introduction of new stablecoins

- World Liberty Financial (part of the Trump family) launched its own USD1 token in March 2025, indicating growing interest in stable digital currencies among tech and finance companies.

Transaction volume in 2025
- Total transaction volume: $33 trillion (up 72% from the previous year).

- USDC: $18.3 trillion.

- USDT: $13.3 trillion.

Conclusion
Although USDT’s market capitalization fell by almost $1.5 billion in February – its biggest drop since December 2022 – the overall stablecoin market continues to grow. Total supply and transaction volume demonstrate sustained interest in stable digital currencies, despite broader crypto market volatility.