Crypto market loses liquidity as stablecoin supply shrinks by $14.2 billion

Stablecoin supply fell by $14.2 billion over the past 30 days, the fastest contraction since June 2022, as capital left the crypto market. Redemptions from US spot ETFs and a negative Coinbase Premium also pointed to weak demand.

In its Running on Empty report published on November 11, 2026, Glassnode said the decline in stablecoin supply reflected holders redeeming tokens for dollars and withdrawing cash from the market. Stablecoins represent funds held on exchanges and on-chain ahead of crypto purchases.

Those withdrawals reduce the liquidity available to support a rally, according to Glassnode. Tether also traded slightly below $1, reflecting the same pressure. The report identified a return to growth in the 30-day supply change as an initial signal of fresh capital entering the market.

US spot ETFs recorded $1.6 billion in net outflows over the past 20 sessions. On November 9, cumulative outflows crossed the report’s $1.5 billion threshold for identifying an outflow stretch. Glassnode said the current episode remained relatively shallow compared with most previous stretches. In earlier episodes, inflows resumed only after Bitcoin reached its low, making renewed inflows a retrospective confirmation of a bottom.

US buying demand also remained weak. The Coinbase Premium, which compares Bitcoin prices on Coinbase, a major venue for US investors, with global prices, stayed negative on a 30-day average throughout the decline from the September high. The discount was the deepest since February, according to the report.

Glassnode adjusted the premium to remove the distortion caused by Tether trading below $1, which otherwise exaggerates the discount. Previous rallies featured a positive premium as US investors paid more for Bitcoin, but that buying pressure was absent. The report said a premium that turns positive and remains there for weeks would indicate a recovery in US demand.