CryptoQuant analyst Darkfost said the stablecoin market’s total capitalization has yet to stage an effective recovery, pointing to weak liquidity entering the crypto market as the main constraint. According to his post cited by BlockBeats on Oct. 3, the sector has shed $14 billion in total market value since May, a sign of sizable capital outflows across the market.
Darkfost also noted that conditions have improved since September. Stablecoin market capitalization has risen by about $4 billion over that period, bringing the total back to roughly $270 billion. Even so, he said the rebound remains limited.
In his view, the trend in stablecoin capitalization is beginning to show signs of reversal, but the recovery is not yet strong enough. He added that more liquidity will still be needed if Bitcoin is to push to a new all-time high.
CryptoQuant analyst Darkfost said the stablecoin market’s total capitalization still has not recovered effectively, with insufficient liquidity entering crypto remaining the main reason, according to a BlockBeats report published on Oct. 3.
Stablecoin market cap has fallen by $14 billion since May
Darkfost said the total stablecoin market cap has declined by $14 billion since May, reflecting sizable capital outflows from the market.
Market improved after September, but the rebound remains limited
He said conditions have improved since September, with total stablecoin market capitalization increasing by about $4 billion to around $270 billion.
Darkfost added that while the trend in stablecoin market cap is showing signs of reversal, the current recovery remains limited. He said more liquidity will still be needed for BTC to reach a new high.
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