Stablecoin supply shrinks $14.2B in 30 days, fastest drop since 2022

Stablecoin contraction is a liquidity signal, not just a sentiment one: it removes the dry powder that typically fuels crypto risk appetite, and pairing it with weak ETF demand suggests capital is leaving the ecosystem rather than rotating within it. The reference to 2022 is the telling detail, since that episode was defined by deleveraging rather than a pause. Whether the outflow reflects genuine risk reduction or a temporary pullback ahead of a catalyst is the open question; the pace of ETF flows alongside the next month's supply trend is where the signal will resolve.