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<ul><li>Liquidity crisis hits crypto market as stablecoin supplies plunge 26% since April.</li><li>Tether defies the stablecoin trend, with supply rising $13B since November.</li><li>Buy-side and sell-side pressures are now balanced after 2021&#39;s sell bias.</li></ul>The <a href="https://cryptotale.org/bitcoin-dips-below-26k-as-crypto-market-faces-downturn/" rel="noopener noreferrer nofollow">crypto market</a> is experiencing a liquidity crisis as the supply of stablecoins has dropped by 26% since April, according to a <a href="https://insights.glassnode.com/the-week-onchain-week-37-2023/" rel="noopener noreferrer nofollow">report</a> by Santiment, a market intelligence platform, and echoed by Checkmate, an account on the X platform. This downward trend in liquidity is causing concerns as trading volumes remain low, and volatility remains compressed.<img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/2158cab90b5f40a3b2ec550cf482e0f0.png" />Notably, even stablecoins are being affected by this contraction, which is a shift in market dynamics. In particular, the total supply of stablecoins has decreased by $43 billion since April 2022, representing a 26% drop from the peak observed in March. In addition to the sentiment surrounding the cryptocurrency market, the community should also consider the appeal of interest rates in traditional markets, which stablecoins typically do not provide.However, it&#39;s important to note that not all stablecoins face the situation. Per Santiment, <a href="https://cryptotale.org/tethers-72-5-billion-u-s-treasury-holdings-challenge-chinas-exit-strategy/" rel="noopener noreferrer nofollow">Tether</a> (USDT) is defying the trend by experiencing a $13.3 billion expansion since November 2022. As a result, its market dominance has surged to 69%, which is remarkable considering it was at a low of 44% three months ago. On the other hand, USDC and BUSD have seen a decline in their supplies, possibly reflecting a shift among U.S. institutions towards higher yield environments.Furthermore, Bitcoin and Ethereum have also witnessed developments. Both experienced an influx of capital this year, with their Realized Caps increasing to $6.8 billion and $4.8 billion monthly. However, this positive trend has halted since August, indicating a downturn in the market.Read full article at <a href="https://cryptotale.org/crypto-liquidity-is-dwindling-amid-shifting-capital-flows/" rel="noopener noreferrer nofollow">CryptoTale.</a>

Crypto Liquidity is Dwindling Amid Shifting Capital Flows

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