Analysis: Total stablecoin market capitalization falls to a low of over 1 years, down approximately 6 over months 17000000000 USD

AT A GLANCE

Darkfost said total stablecoin market capitalization fell by approximately over 6 months 17000000000 USD, interpreting this as a contraction in crypto market liquidity.

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Analysis: Total stablecoin market capitalization falls to its lowest level in over 1 years, shrinking by 6 over months 17000000000 USD BlockBeats news,November 3, CryptoQuant analyst Darkfost wrote that the total stablecoin market capitalization has fallen to its lowest level in over 1 years. Since April this year, total stablecoin market capitalization has fallen from approximately 280000000000 USD to 263000000000 USD, a decrease of approximately 17000000000 USD，6, with a cumulative decline of approximately over 6%months, reflecting a continued contraction in overall crypto market liquidity.

In terms of the distribution of stablecoins across centralized exchanges,Binance still accounts for approximately this share of the stablecoin supply on exchanges: 70%. Changes in its stablecoin market capitalization are therefore somewhat representative. The Binance-day moving average of stablecoin market capitalization on 90 has fallen by approximately 20%, from 51000000000 USD to 34000000000 USD. In particular, following an earlier hack of the platform, approximately 3000000000 USD in stablecoins flowed out, further exacerbating the trend.

Darkfost noted that the decline in stablecoin market capitalization on Binance is not a recent development but has continued for over 1 years, broadly in line with the downward trend in the overall stablecoin market capitalization. This simultaneous decline primarily reflects insufficient market demand and a lack of new capital and liquidity inflows. Recent changes in the geopolitical and economic environment, particularly the frequent security vulnerabilities and attacks in the crypto ecosystem, may be affecting investors' assessment of risk.

Faced with ongoing security risks, investors may view investing in the crypto market as excessively risky and become less willing to participate. The market is currently in urgent need of renewed liquidity. If capital remains scarce, the positive market trend that has gradually emerged in recent months could reverse, plunging the broader crypto market back into a downturn and pessimism.

Original link:https://m.theblockbeats.info/flash/375222

Key points

BlockBeats reported that CryptoQuant analyst Darkfost said total stablecoin market capitalization has fallen to its lowest level in over 1 years.
The article said total stablecoin market capitalization fell from approximately April in 280000000000 USD this year to 263000000000 USD, a decrease of approximately 17000000000 USD，6, with a cumulative decline of approximately over months 6%。
The article said Binance accounts for approximately this share of the stablecoin supply on centralized exchanges: 70%。
The article said the Binance-day moving average of stablecoin market capitalization on 90 fell from 51000000000 USD to 34000000000 USD, and described the decline as approximately 20%。
The article said that following an earlier hack of the platform, approximately 3000000000 USD in stablecoins flowed out.
Darkfost believes the decline in stablecoin market capitalization on Binance has continued for over 1 years, broadly in line with the downward trend in the overall stablecoin market.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

Stablecoins are commonly used to trade crypto assets. The statistics in the article indicate that the total supply of stablecoins and the amount held on Binance are declining; on this basis, Darkfost concludes that market demand and new capital are insufficient. However, the relationships between demand, security incidents and market performance are analytical opinions, not facts independently established in the article.

Why it matters to readers

If the stock of stablecoins and balances on exchanges continue to decline, funds available for trading and allocation may decrease, and the market's ability to attract fresh liquidity may also weaken.

Beginners can consider total stablecoin market capitalization and stablecoin balances on exchanges as indicators of market funding conditions, but should not judge price direction based on a single indicator.

Risks and unknowns

The article does not provide CryptoQuant's underlying data or calculation methods, and the statistics have yet to be independently verified.
The arithmetic decline from 51000000000 USD to 34000000000 USD is approximately one-third, inconsistent with the article's characterization of it as “approximately 20%.”
The specific timing, nature and losses associated with the earlier hack of the platform were not specified.
Insufficient market demand, the effect of security incidents on investors' judgment, and the possibility of a reversal in the positive trend are all Darkfost's analysis or speculation.

Analysis: Total stablecoin market capitalization falls to a low of over 1 years, down approximately 6 over months 17000000000 USD

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