Tether burned 2.5 billion USDT on Ethereum in a single day, the largest scale since February

CryptoQuant, citing on-chain data analysis, states that Tether Treasury has destroyed $2.5 billion worth of USDT on the Ethereum network, marking the largest single destruction on this network since February of this year. This scale exceeds the $2 billion destruction on May 8 and is second only to the historical high of $3.5 billion on February 10.

Meanwhile, the USDT balance flowing in and out of Binance through the Tron network has dropped to approximately $806 million, the lowest level since December 29, 2025 ($391 million), falling below the $1 billion mark, indicating a significant contraction in USDT liquidity in the Binance Tron channel. The large-scale destruction by Tether Treasury itself reflects more on redemptions, fund management, or cross-chain rebalancing operations rather than being a direct market signal; however, the simultaneous contraction of Ethereum's supply side and Binance's Tron liquidity is worth ongoing attention to see if the trend of tightening liquidity in dual-chain stablecoins continues.