Stablecoin growth slows down but remains positive
The market capitalization of stablecoins has only increased by about 1.1 billion USD/week, significantly lower than the 4–8 billion USD that previously supported Bitcoin at the end of 2024. Over the past 60 days, USDT has added 10 billion USD, down from a peak of over 21 billion USD.
Liquidity is being controlled as the rate of USDT issuance and stablecoin market capitalization growth has decreased compared to the average, indicating that new capital inflow into crypto is slowing down.
However, stablecoin reserves on exchanges reached a record 68 billion USD (August 22), with USDT accounting for 53 billion and USDC 13 billion. Liquidity remains abundant, but if market capitalization does not expand strongly again, the market is likely to enter a consolidation phase rather than a parabolic breakout.
