Analysis: Stablecoin market cap has shrunk by $14 billion since May, with liquidity still insufficient to recover.

CryptoQuant analyst Darkfost published a report stating that the total market capitalization of the stablecoin market remains unable to recover effectively, primarily due to insufficient liquidity flowing into the crypto market. Since May, the total stablecoin market cap has decreased by $140 billion, reflecting large-scale capital outflows from the sector. However, the market has improved since September, with the total stablecoin market cap rising by roughly $40 billion to approximately $270 billion as of now. Darkfost further noted that while the stablecoin market cap trend is showing signs of reversal, the current recovery momentum remains relatively limited. To push Bitcoin (BTC) to hit new all-time highs, the market still needs additional liquidity injections.