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Stablecoin liquidity is expanding, but the pace of market-cap growth has cooled significantly, according to CryptoQuant. Weekly increases in stablecoin market capitalization have fallen to roughly $1.1 billion, a marked drop from the $4–8 billion weekly inflows that helped fuel Bitcoin’s sharp gains in late 2024. While issuance remains positive, the tempo of new capital entering crypto has decelerated.
Stablecoin growth is cooling. Recent expansions peaked at just $1.1B, down from $4–8B in late 2024.
Signs of Liquidity Moderation
Market-cap and issuance trends
CryptoQuant’s data show that aggregate stablecoin market-cap growth and Tether (USDT) issuance are sliding closer to — and slightly below — their moving averages. Tether’s 60-day net issuance has moderated to around $10 billion, down from cycle peaks above $21 billion. These metrics point to a slowdown in fresh inflows rather than an outright contraction.
Implications for traders
For traders and investors, a cooling issuance trend suggests liquidity remains supportive but is less likely to produce the same rapid, broad-based rallies that characterized earlier phases. Expect more measured moves and selective opportunities rather than nonstop momentum-driven rallies.
Exchange Reserves Reach Record High
Despite slower issuance, stablecoin balances held on exchanges hit a new all-time high of $68 billion on August 22. That total surpasses the previous record set in February 2022 and signals substantial dry powder available for market activity. USDT dominates exchange reserves at roughly $53 billion, while USDC accounts for about $13 billion.
Binance Leads in Altcoin and Stablecoin Deposits
Binance remains the largest hub for altcoin inflows, handling the bulk of deposit activity during last year’s rally and continuing to lead in daily altcoin transactions. At peak rally times Binance recorded as many as 59,000 deposits in a single day—far outpacing competitors—while normal market conditions still show Binance ahead in daily inflows.
Outlook: Consolidation Over Parabolic Rallies
CryptoQuant highlights a split signal: issuance is moderating, but exchange reserves are historically high. This combination suggests markets are more likely to enter consolidation phases with targeted surges rather than broad, parabolic advances unless stablecoin issuance accelerates again. Investors should weigh the ample on-exchange liquidity against slower new capital inflows and prioritize risk management and selective positioning in this measured environment.
Source: cryptonews
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