Crypto Market Liquidity Squeeze: Binance's Stablecoin Reserves Hit Lowest Level This Year

BlockBeats news, October 21 - According to data from crypto analyst Darkfost, stablecoin reserves on CEXs have recently been declining, with Binance's stablecoin reserves hitting their lowest level this year. Data shows that the market value of stablecoins on Binance has been in a downtrend since June, decreasing by approximately 4.7% within 90 days.

Darkfost also pointed out that the decline in stablecoin reserves is not a problem unique to Binance. This stablecoin outflow dynamic will continue to exert pressure on the market, and the lack of inflow liquidity is exacerbating the current weakness. To change the situation, the market needs to see capital flowing back into CEXs, which would be a sign of demand recovery.