TechFlow News: On February 24, Matrixport released its chart of the day stating, “U.S. Treasury Secretary Scott Bessent recently noted that the market size of U.S. dollar–pegged stablecoins could expand to $3 trillion over the next few years. In the long term, the adoption trend of a digital U.S. dollar remains ongoing, and the overall narrative remains positive. However, the latest data indicates weakening short-term momentum: stablecoin growth has clearly slowed, exhibiting signs of stagnation.
This decline will not only weigh on Bitcoin but also pose significant headwinds for the entire crypto ecosystem. Stablecoins constitute the most critical liquidity infrastructure in crypto markets; a stall in supply expansion often signals capital exiting on-chain ecosystems and flowing back into fiat—rather than remaining within crypto markets for continued rotation. If stablecoins sustain high net outflows, Bitcoin’s liquidity environment will likely remain tight in the near term, making recovery challenging. Even if the Market Structure Bill passes smoothly, unless real demand and capital inflows reaccelerate, stablecoin supply may not immediately resume expansion.”
