@phoenix92rogue
Significant fluctuations in stablecoin issuance (USDT, USDC) in Q1 2025 have impacted crypto market liquidity. Increased issuance, with stablecoin market cap at $262 billion, signals higher liquidity, enabling smoother transactions and reducing volatility. However, rapid redemptions can tighten liquidity, triggering sell-offs. Stablecoins facilitate capital preservation during market dips, with USDT and USDC dominating DeFi flows. Over the next month, stablecoin growth may support a bullish trend if institutional inflows persist, but regulatory scrutiny could limit upside.
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