The stablecoin market experienced a significant contraction in November, with a $6 billion outflow marking the largest monthly decline since the 2022 Luna/UST collapse. This reduction brought the market's total value down from over $330 billion to approximately $324 billion. The decline was attributed to several factors, including rising yields in traditional markets, Bitcoin's price weakness, the unwinding of leveraged positions, and ongoing regulatory uncertainty. USDT experienced the most substantial outflows during this period. Despite the contraction, the stablecoin market remains above 2024 levels, with analysts divided on whether this represents a necessary deleveraging or signals potential liquidity stress.