CryptoQuant: Growth of Stablecoin Liquidity Has Slowed, Market May Be More Inclined to Enter a Consolidation Phase

According to Mars Finance, as monitored by CryptoQuant, the growth of stablecoin liquidity has slowed down, with market capitalization expansion declining to about $1.1 billion per week, significantly down from the $4 to $8 billion seen during the Bitcoin price surge at the end of 2024. Additionally, the 60-day growth of USDT is approximately $10 billion, down from a previous peak of over $21 billion. Despite the slowdown in issuance, the total reserves of stablecoins on exchanges reached a historical high of $68 billion on August 22, with USDT accounting for $53 billion and USDC for $13 billion. The market capitalization growth of stablecoins remains positive, but the slowing growth rate suggests weakened market liquidity support, or a greater tendency to enter a consolidation phase rather than a sustained parabolic rise.