Key Takeaways
Why are stablecoin exchange reserves dropping?
Because investors may be moving funds to self-custody, DeFi, or bracing for regulatory shifts.
Who’s leading the stablecoin surge?
Tether’s USDT leads with $19.6B in net inflows, followed by USDC and USDe.
Stablecoins are flooding in. But oddly, they’re not sticking around.
In Q3 alone, we saw a jaw-dropping $45.6 billion in net inflows. That’s a 324% surge, with heavy hitters like Tether [USDT], USD Coin [USDC], and the fast-rising Ethena [USDe] leading the charge.
But none of this is without trouble.
Here’s what’s peculiar
Even though stablecoins are flooding into the market, exchange reserves are dropping.
Total reserves fell by $5 billion in just over a week. Binance alone saw $4B in outflows, mostly in USDT and USDC.
That kind of liquidity exit is usually a sign of reduced buying power, risk
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Author: Samyukhtha L KM
