Analysis: The growth rate of stablecoins is slowing down, and the marginal support of liquidity in the crypto market is weakening.

In its chart analysis today, Matrixport noted that while stablecoin supply continues to expand, the rolling growth rate over the past 12 months peaked and declined in late October, indicating a cooling inflow of stablecoins and a simultaneous slowdown in new liquidity into the crypto market. Combined with the current pullback, the firm believes that the Federal Reserve's shift towards a more cautious stance is a key trigger for weakening liquidity. This also means that even though the absolute amount of new supply remains substantial, the overall liquidity environment may be weaker than previously expected.