USDT Market Cap Shrinks for Second Consecutive Month, Stablecoin Growth Stalls as Cryptocurrency Market Recovery Casts Shadow

BlockBeats News, February 25th, the world's largest stablecoin Tether (USDT) has seen a 0.8% decrease in market capitalization this month, dropping to $183.61 billion, continuing the trend from January when it fell about 1% from its all-time high of $186.84 billion, potentially marking a second consecutive month of contraction. This is the first time since the 2022 TerraForm Labs crash that a consecutive monthly shrinkage has occurred, seen as a signal of tightening market liquidity.

Analysts point out that stablecoins are the "liquidity fuel" of the crypto market, and their supply contraction usually indicates a net outflow of funds. Against this backdrop, the demand for a U.S. spot Bitcoin ETF remains subdued, leading market participants to adopt a cautious outlook on the sustainability of any rebound.

On the price front, Bitcoin has failed to generate sustained momentum since bottoming around $60,000 on February 6th, although it briefly rebounded above $70,000, it is currently fluctuating around the $65,000 range.

Meanwhile, another major stablecoin, USD Coin (USDC), has seen its market capitalization rise from a January low of $70 billion to around $75 billion, but its overall growth for the year has stagnated, indicating a simultaneous slowdown in the expansion momentum of major stablecoins. Market participants believe that if stablecoin supply fails to rebound, the comprehensive recovery of the crypto market will still face liquidity constraints.