Crypto Market Liquidity Shortage Persists, Binance Stablecoin Reserves Drop to $41.4 Billion

BlockBeats News, February 24th, due to the Fed's tightening policy and weak fund inflows leading to continued cryptocurrency liquidity shortages, the scale of stablecoins on the Binance platform has decreased by 18.6% in the past three months, from $50.9 billion to the current $41.4 billion, a decrease of approximately $10 billion. Despite the decrease in scale, Binance still accounts for about 64% of the total stablecoin reserves across all trading platforms.

The scale of stablecoin reserves on trading platforms is usually adjusted based on investor demand, and a decrease in reserves typically means that investors are exchanging cryptocurrencies back to fiat currency rather than holding stablecoins to re-enter the market.