$USDT Tether (USDT) is designed to stay pinned to $1.00, the "analysis" today, February 23, 2026, is actually quite dramatic for a stablecoin. Tether is currently facing its largest monthly supply drop since the FTX collapse, primarily due to shifting regulations and rising competition.
Latest Analysis: The "Big Squeeze"
Tether's market dominance is being tested as capital rotates toward more regulated alternatives.
Supply Contraction: The circulating supply has dropped by roughly $1.5 billion this February. As of today, it sits at approximately $183.6 billion, down from its January peak of $187 billion.
The "USDC Rotation": While USDT supply is shrinking, the total stablecoin market is actually growing. Circle’s USDC has surged nearly 5% this month, signaling that institutional investors are moving toward coins they perceive as more "regulatory-friendly," especially under Europe’s MiCA guidelines.
The Peg Check: Despite the supply drop, the peg remains solid at $1.00 (roughly 90.75 INR). The mechanism is holding, but the "trust premium" is leaning toward competitors.
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