Stablecoin market cap drops $2.24B in 10 days, signaling liquidity drain

The combined market capitalization of the top 12 stablecoins has decreased by $2.24 billion over the past 10 days, according to on-chain analytics firm Santiment. Over the same period, Bitcoin's price fell by approximately 8%. Santiment noted that this trend suggests a broader shift in capital flows, with funds moving from risk assets like cryptocurrencies to traditional safe havens such as gold and silver, which have recently hit all-time highs. The firm explained that a shrinking stablecoin supply indicates investors are converting their holdings to fiat currency and exiting the market. This reduction in liquidity could limit buying pressure in the short term, potentially slowing the pace of any market rebound.