Analyst: Stablecoin market cap shrinks by over $3 billion monthly, Bitcoin's rebound lacks 'fuel' support

CoinFeed July 8 news, CryptoQuant analyst Axel Adler Jr. stated that since mid-May, the stablecoin market has shifted from a source of liquidity to a consumer of liquidity. The 30-day average stablecoin exchange inflow has dropped from $3.2 billion to $2.65 billion, 31% lower than the annual average of $3.86 billion; the combined market cap of USDT and USDC is shrinking at a rate of over $3 billion per month. The analyst pointed out that Bitcoin's 21% decline since mid-May is a direct result of the 'fuel' shortage. The current market is losing liquidity on two levels simultaneously: fewer new stablecoins are flowing into exchanges, and the dollar base itself is contracting. A signal of improvement requires a simultaneous reversal of both indicators—the 30-day average inflow returning above the annual average, and the monthly market cap change crossing back above zero and turning positive.