Analysis: Stablecoin Market Cap Continues to Decline, Crypto Market Liquidity Further Tightens

TechFlow News, July 07, CryptoQuant analyst Darkfost pointed out that data shows within the past 30 days, the market caps of USDC and USDT decreased by 3.6% and 2% respectively, reflecting that the overall liquidity of the crypto market continues to weaken. Since November 2025, this slowdown trend has become relatively obvious.

Stablecoins are typically issued when market demand rises and burned when demand weakens, therefore, changes in their market cap can serve as an important indicator for measuring capital inflows and outflows and liquidity conditions in the market. The current decline in stablecoin scale indicates that capital flowing out of the crypto market exceeds new liquidity entering, and the overall market remains in a phase of tight liquidity.