Tether Market Cap Sees Second Consecutive Decline Amid Stablecoin Rotation

The decrease in the market capitalization of Tether's (USDT) stablecoin has raised concerns about the liquidity level in the crypto market. According to recent data, the circulating supply of USDT has reduced by $1.5 billion in February, following a similar decrease in January.

While this trend may indicate a reduction in trading activity, experts believe that changes in regulations and platform policies could be driving the shift in allocation preferences. The growth of USD Coin's market capitalization to around $75 billion suggests that investors are rotating their funds within stablecoins rather than leaving the sector entirely.