According to data from Glassnode analyzed by CryptoSlate, the volume of stablecoins held on centralized exchanges has dropped below $20 billion, the lowest since April 2021. The decline in stablecoin balances can be attributed to increased regulatory scrutiny and the collapse of several crypto-related firms.

BUSD and USDC have faced significant challenges, with their supply shrinking to $5.5 billion and $29 billion, respectively, while Tether's USDT has continued to grow, adding more than $15 billion to its market cap this year.