Stablecoin Supply Falls by $17 Billion in a Month
Uk Jin
Summary
- Glassnode said stablecoin supply fell by about $17 billion over the past month, marking the biggest decline since 2022.
- It said investors are converting stablecoins into fiat currency, pulling money out of the crypto market and weakening buying power.
- Glassnode said the crypto market needs an inflow of new capital, rather than money leaving the market, to turn into a bull run.
Forecast Trend Report by Period
A sharp decline in stablecoin supply is weakening buying power in the crypto market, according to an analysis.
Glassnode said on Nov. 14 that stablecoin supply has fallen by about $17 billion over the past month. It was the steepest decline since 2022.
The data indicates money is leaving the crypto market as investors convert stablecoins into fiat currency.
As stablecoin supply shrinks, the pool of capital that could flow into Bitcoin and other digital assets is also declining, Glassnode said. For the crypto market to turn bullish, money must stop leaving the market and new capital must flow in.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.