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Matrixport: Growth of Stablecoins Slows, Liquidity Support in Crypto Market Weakening
Summary: Matrixport's latest chart analysis indicates that while stablecoin supply is still expanding, the rolling growth rate over the past 12 months peaked and fell back in late October, with USDT and USDC showing a significant year-on-year slowdown. This change suggests that the influx of new liquidity into the crypto market is simultaneously slowing down. Matrixport ...
Matrixport's latest chart analysis indicates that while stablecoin supply is still expanding, the rolling growth rate over the past 12 months peaked and fell back in late October, with USDT and USDC showing a significant year-on-year slowdown. This change suggests that the influx of new liquidity into the crypto market is simultaneously slowing down. Matrixport believes that the recent market pullback, coupled with the shift in Fed policy expectations towards greater caution, is one of the key factors triggering the weakening of liquidity at the margin. The report emphasizes that even though the absolute size of stablecoins is still growing, the overall liquidity environment in the crypto market may be weaker than previously expected, thereby constraining risk assets.
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Link: Matrixport: Growth of Stablecoins Slows, Liquidity Support in Crypto Market Weakening [Copy]
