Stablecoin market capitalization has shrunk by $14 billion since May, and liquidity recovery remains insufficient.

BlockBeats news, October 3rd, CryptoQuant analyst Darkfost posted that the total market capitalization of the stablecoin market is still struggling to recover effectively, mainly due to insufficient liquidity entering the crypto market. Since May, the total market capitalization of the stablecoin market has decreased by 14 billion USD, reflecting a relatively large-scale outflow of funds from the market. However, since September, the market has improved somewhat, with the total stablecoin market capitalization increasing by about 4 billion USD and now rebounding to approximately 270 billion USD.

Darkfost also stated that although the trend in stablecoin market capitalization is showing signs of reversal, the current recovery momentum remains relatively limited, and to push BTC to new highs, the market still needs more liquidity injection.