USDT Market Cap Decline Signals Shrinking Crypto Liquidity, Analyst Says

BitcoinWorld USDT Market Cap Decline Signals Shrinking Crypto Liquidity, Analyst Says The market capitalization of Tether’s USDT, the world’s largest stablecoin, has been on a downward trend, signaling that liquidity in the cryptocurrency market is drying up, according to on-chain analyst Moreno.

The 60-day change in USDT’s market cap has fallen to approximately negative $4 billion, marking the largest contraction on record.

Understanding the USDT Supply Contraction Over the past 11 days, about 870 million USDT has been removed from circulation, accelerating the decline in market capitalization.

Moreno, a pseudonymous on-chain analyst, noted that USDT is the most immediately deployable source of liquidity in the crypto market, meaning that its shrinking supply indicates market liquidity is being depleted rapidly.