Tether burns $2.5 billion USDT on Ethereum in largest burn since February

Tether carries out a striking operation on the Ethereum network on 7 July 2026: the company burns $2.5 billion in USDT, the largest single burn on this network since February of this year. At the same time, the USDT balance on the Tron network at Binance drops to a level not seen in months. Analysts are closely monitoring the situation.

Also read the latest stablecoin news on Blockchain Stories.

Largest Ethereum burn in months

According to data from CryptoQuant, shared by Wu Blockchain, Tether burns $2.5 billion in USDT on the Ethereum blockchain in one go on 7 July. That is the largest burn on this network since February 2026 and stands out immediately in the charts. The purple bar representing the ERC20 burn towers above all previous activity in recent months.

The Ethereum price stands at $1.700 at the time of writing, a drop of 2.3% in the past 24 hours. Whether the burn directly affects the price is unclear, but the scale certainly catches the attention of market analysts. Tether has recently shown activity elsewhere too, such as the move to bring USDT back to the Bitcoin network via the RGB protocol.

Tron balance on Binance drops below $1 billion

Alongside the large Ethereum burn, another development stands out: the USDT balance on the Tron network at Binance falls to around $806 million. That is the lowest level since 29 December 2025 and the first time in a long while that this amount has dropped below the $1 billion mark. On the Tron price page, you can see how the TRX token reacts to such shifts.

Analysts indicate that burns by Tether are usually related to treasury management and rebalancing liquidity between networks. However, they note that the combination of a sharp decline in the Ethereum supply and a shrinking Tron liquidity at Binance is worth watching. Whether this involves a strategic shift or a routine operation remains unclear for now. More Tron news and Ethereum news can be found on Blockchain Stories.