Stablecoin liquidity growth is slowing down, with weekly market capitalization expansion down to about 1.1 billion USD, significantly lower than 4–8 billion USD/week during the late 2024 period.
Data from CryptoQuant shows that USDT's 60-day growth is around 10 billion USD, with total stablecoin reserves on exchanges hitting a record 68 billion USD on August 22, indicating weakened liquidity support and a higher likelihood of a consolidation trend than a parabolic increase.
MAIN CONTENT
Weekly stablecoin market capitalization growth has decreased to about 1.1 billion USD.
USDT has increased by about 10 billion USD in 60 days, lower than the previous peak of 21 billion USD.
Total reserves on exchanges reached 68 billion USD (USDT 53 billion, USDC 13 billion), indicating concentrated liquidity on exchanges.
How has stablecoin liquidity growth decreased sharply?
Short answer: According to CryptoQuant data, weekly stablecoin market capitalization expansion decreased to about 1.1 billion USD, compared to 4 to 8 billion USD per week when Bitcoin surged at the end of 2024.
Analysis: This slowdown reflects the new issuance levels and the inflow of stablecoins slowing down compared to the previous boom period. As weekly market capitalization expansion decreases, the ability to provide immediate liquidity support for the cryptocurrency market also weakens, reducing momentum for strong price rallies.
The situation of USDT growth and its significance?
Short answer: CryptoQuant data shows that USDT increased by about 10 billion USD in the last 60 days, lower than the previous peak of over 21 billion USD.
Analysis: The 60-day growth decrease indicates that USDT issuance has slowed compared to previous money pumping episodes. Nevertheless, USDT still holds a significant share of exchange reserves, reflecting its continued role as the primary liquidity tool for trading and leverage in the cryptocurrency ecosystem.
What does high total stablecoin reserves on exchanges mean for liquidity?
Short answer: Total stablecoin reserves on exchanges reached 68 billion USD on August 22, with USDT accounting for 53 billion USD and USDC 13 billion USD, according to CryptoQuant.
Analysis: High exchange reserves indicate liquidity available for trading or capital withdrawal, but if new issuance slows, the market's rebound strength when needing large cash flows will be weaker. Concentrated inventory on exchanges also increases the risk of rapid rotation during significant volatility.
Metric USDT USDC Exchange Reserve (August 22) 53 billion USD 13 billion USD 60-day growth ~10 billion USD No detailed data in the source
Frequently Asked Questions
Does slow growth in stablecoins reduce market liquidity?
According to CryptoQuant data, slow growth reduces working capital support, thereby weakening immediate liquidity and the ability to drive parabolic prices.
Is high exchange reserve a positive sign?
High reserves indicate available liquidity, but if new issuance slows, this source may not be sufficient to sustain prolonged upward momentum.
How is USDT still important in the ecosystem?
USDT accounts for a large portion of exchange reserves (53 billion USD), continuing to play a key role in liquidity and leveraged trading.
Will the market enter a consolidation phase or continue to surge?
Current data indicates that the likelihood of a consolidation trend is higher than a parabolic increase, due to the sharp decline in stablecoin market capitalization expansion.
Source: https://tintucbitcoin.com/cryptoquant-thanh-khoan-stablecoin-giam-thi-truong-tich-luy/
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