Tether Posts Consecutive Market Cap Contraction

On February 25, 2026, on-chain Dune metrics and CoinDesk reporting show Tether's market capitalization has contracted for a second straight month, falling about 0.8% in February to $183.61 billion after a 1% drop in January. Analysts attribute the decline to redemptions driven by MiCA regulatory pressure, competition from USDC and a Trump-backed USD1 coin, and attractive short-term Treasury yields, which reduces liquidity for crypto markets.