ERC-20 Stablecoins Log First Major Cap Drop of This Market Cycle

ERC-20 stablecoins log first major cap drop of this market cycle

ERC-20 stablecoin market cap on Ethereum just fell $7b in a week, signaling investors may be exiting crypto entirely instead of rotating risk. The ERC-20 stablecoin market capitalization has declined by several billion dollars over the past week, marking the…

Stablecoin Market Cap Drops By $7 Billion—What It Means For Bitcoin

Data shows the ERC-20 stablecoin market cap has just seen a notable drop for the first time in years, something that could have a knock-on effect on Bitcoin. ERC-20 Stablecoin Market Cap Has Gone Down During The Past Week As highlighted by CryptoQuant author Darkfrost in an X post, stablecoins have witnessed outflows over the past week. A “stablecoin” is a cryptocurrency that has its price pegged to a fiat currency, with tokens based on the US D…

Stablecoin Liquidity Breaks Lower as $7B Exits Crypto in a Single Week More Stories ETHNews

The crypto market is flashing one of its clearest liquidity warning signals of the current cycle. According to data from CryptoQuant, the total supply of ERC-20 stablecoins has dropped sharply, marking the first decline of this magnitude during the ongoing market cycle. Over the past week alone, the aggregate ERC-20 stablecoin market capitalization fell by roughly $7 billion, sliding from around $162 billion to $155 billion. This move stands out…

Stablecoin Market Cap Sheds $7B, But Analysts Say It’s No Bear Signal

TLDR: The reduction in supply on Ethereum is a result of asset rotation between different networks, rather than a massive capital exodus. The use of derivatives and options allows traders to maintain risk exposure without needing idle liquidity in spot wallets. A true alarm signal would require a massive conversion to fiat currency and a sustained drop in open interest across exchanges. Recent hours have reawakened old fears among investors due…