Stablecoin Supply Falls $12.7 Billion as Crypto Market’s Cash Reserves Shrink

USDC accounted for most of the monthly decline, raising questions about available trading liquidity. The combined market value of major stablecoins fell by $12.7 billion over the past month, according to Bitcoin.com News. The decline touches a metric traders watch closely as a gauge of liquidity sitting on the sidelines of crypto markets. Stablecoins function as dollar-pegged tokens used to move value between exchanges without converting back to fiat currency. Traders often park funds in stablecoins between trades. A shrinking supply can signal that capital is leaving the crypto ecosystem entirely, rather than simply rotating between assets.

Source: TheCoinrise