Cointelegraph reported that liquidity in the cryptocurrency market continues to shrink. The outlet stated, "Over the past 30 days, the market capitalization of USDC and USDT decreased by 3.6% and 2%, respectively. The decline in stablecoin market capitalization has continued since November of last year. This is because more funds are leaving the market than entering it. Stablecoins are generally newly issued when demand increases, and issuers burn excess supply when demand decreases. Therefore, changes in stablecoin supply are used as a key indicator showing market demand and liquidity flows. Currently, an environment of increasing liquidity constraints appears to be continuing," it explained.
