Tether burns $2.5 billion USDT on Ethereum in a single day, largest since February

CoinFeed July 8 news, according to CryptoQuant data, Tether Treasury burned $2.5 billion USDT on the Ethereum network on July 7, the largest since the $3.5 billion burn on February 10 this year, exceeding the $2 billion burn on May 8. At the same time, the balance of USDT flowing in and out of Binance through the Tron network dropped to about $860 million, the lowest since December 29, 2025 ($391 million), falling below the $1 billion threshold for the first time, indicating a significant contraction in USDT liquidity on Binance's Tron channel. Analysis points out that the large-scale burn may reflect redemptions, treasury management, or cross-chain rebalancing, rather than a direct market signal, but the combination of Ethereum supply contraction and the simultaneous decline in Binance Tron liquidity is noteworthy.