Ethereum-based stablecoin market cap falls $7B in past week

The market capitalization of Ethereum-based stablecoins has fallen by $7 billion over the past week, raising concerns about shrinking market liquidity, CryptoPotato reported, citing crypto analyst Darkfost. The analyst explained that a decline in stablecoin market cap is a potential bearish signal, noting that a similar pattern emerged during Bitcoin's prolonged downturn in 2021. The report adds that exchange data supports the liquidity concerns, with approximately $6 billion in assets withdrawn from Binance last week. Market pressure is expected to intensify as BTC trades below $88,000, compounded by macroeconomic headwinds such as the Federal Reserve's liquidity reduction.