@hefes
The decline in stablecoin market capitalization is a worrying sign for the market.
The market capitalization of stablecoins on the Ethereum network fell from $162 billion to $155 billion in a week—the first decline in the current cycle, according to CryptoQuant analysts.
They believe this indicator reflects an outflow of liquidity: investors are converting stablecoins to fiat and exiting the crypto market amid the correction.
Experts call this situation negative for the market, as the decline in stablecoin volume exacerbates the liquidity shortage. CryptoQuant notes that similar dynamics were observed in 2021 before the onset of the bear market.
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