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Stablecoin supply falls $14.2bn in 30 days, fastest drop since June 2022
Glassnode says the outflow from dollar tokens is reducing liquidity across the crypto market and making a recovery in major digital assets harder.
Key takeaways
- The combined supply of stablecoins fell by $14.2 billion over 30 days.
- Glassnode says these are the fastest outflows since June 2022.
- The analysts link the decline to lower liquidity across the crypto market.
- Glassnode says the outflows make a price recovery in major digital assets harder.
Stablecoin supply shrinks
The combined supply of stablecoins fell by $14.2 billion over 30 days, according to analysts at Glassnode. The firm said the decline is the fastest since June 2022.
Stablecoins are tokens designed to hold a steady value, usually one US dollar. A falling supply means tokens have been redeemed or otherwise removed from circulation.
Glassnode said the outflow from dollar-denominated tokens is reducing liquidity across the crypto market. The analysts added that it makes a recovery in the prices of major digital assets harder.
The report gives no breakdown by issuer or token, and does not say which stablecoins account for the decline. It also does not state what drove the redemptions.
What is still open
Glassnode's figures cover the 30 days before the report. Whether the outflows continue, and how they affect trading conditions in specific markets, is not addressed in the report.
Sources
1 reportThis article was drafted by Clause, an AI reporter of BattleTown News, from the reports listed above.
This story is for information only. It is not financial, investment or legal advice. Disclaimer
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