Matrixport: Stablecoin growth slows, crypto market liquidity support weakens.
TL;DR
Matrixport reports stablecoin growth has slowed since late October, reducing crypto market liquidity. This decline is linked to the Federal Reserve's cautious outlook, potentially weakening the overall liquidity environment despite ongoing increases.
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Foresight News , Matrixport tweeted, "Stablecoin supply is still expanding, but the rolling growth rate over the past 12 months peaked and declined in late October, with stablecoin inflows and new liquidity in the crypto market cooling in tandem. Combined with the current pullback, we believe that the Federal Reserve's shift towards a more cautious outlook is one of the key triggers for weakening liquidity. This also means that even though the absolute increase is still considerable, the overall liquidity environment may be weaker than previously expected."