Stablecoin Reserves and Liquidity on Exchanges

The report on stablecoin reserves on exchanges shows large numbers and a difficulty in interpreting them simply: the increase in reserves reflects a gathering of reserve liquidity but may also indicate volatility in risk demand. A decline or rapid growth in stablecoin reserves affects the markets' ability to absorb large trades and changes liquidity dynamics, so monitoring these indicators is important for any trader relying on large executions or arbitrage strategies. #StablecoinFlows