Huo Xing Cai Jing reports that on October 3, CryptoQuant analyst Darkfost stated that the total market capitalization of stablecoins remains struggling to recover effectively, primarily due to insufficient liquidity entering the crypto market. Since May, the total market cap of stablecoins has declined by $14 billion, reflecting significant capital outflows. However, the market has shown improvement since September, with stablecoin market cap increasing by approximately $4 billion and rebounding to around $270 billion. Darkfost also noted that although there are early signs of a reversal in the stablecoin market cap trend, the current recovery remains limited, and further liquidity inflows are needed to drive Bitcoin to new highs.
Stablecoin market cap has shrunk by $14 billion since May, with liquidity still insufficient.
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Summary
Liquidity remains a key issue in the crypto market, as the stablecoin market cap dropped $14 billion since May, according to CryptoQuant analyst Darkfost. The outflow indicates weak inflows into the crypto market. The market saw slight improvement in September, with a $4 billion rebound to $2.7 trillion. Darkfost noted that the recovery remains limited, and more liquidity is needed in the crypto market to drive BTC higher.
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