Analysis: The market capitalization of stablecoins has shrunk by nearly $15 billion since May, and liquidity continues to drain from the crypto market.

August 10th, CryptoQuant analyst Darkfost stated in a post that since May, the total market capitalization of stablecoins has decreased by nearly $15 billion, from around $280 billion to $266 billion. He pointed out that from October last year to May this year, the total market capitalization of stablecoins remained relatively flat, indicating that no new liquidity entered the crypto market during this period, or the added liquidity was insufficient to drive further growth in stablecoin market capitalization.

Currently, even if BTC manages to stabilize, the market demand has not yet recovered, and insufficient liquidity is limiting BTC from breaking back above. At the same time, the stablecoin market capitalization has been decreasing since May, reflecting not only the lack of new funds in the market but also possibly indicating that existing liquidity is gradually exiting the crypto market. In this situation, even if BTC temporarily stops its decline, it still faces pressure from insufficient liquidity.