On July 7, Tether burned USDT worth $2.5 billion on the Ethereum network, marking the largest single burn volume since February this year. Meanwhile, Binance’s Tron-based USDT holdings dropped to approximately $806 million, hitting the lowest level since December 29, 2025 and falling below the $1 billion threshold.

Analysts note that Tether’s token burns are generally tied to treasury management and cross-chain rebalancing. However, the sharp contraction in Ethereum supply paired with a simultaneous liquidity decline on Binance’s Tron channel suggests sustained tightening of stablecoin liquidity across the two major blockchains.