Leading stablecoin Tether shrinks again as market cap looks set for second straight monthly drop
Tether's market cap is set for a second monthly contraction, signaling challenging conditions for the broader crypto market recovery.Summary
Tether (USDT), the world's largest stablecoin, is shrinking again, with its market capitalization dropping 0.8% to $183.61 billion this month, following a 1% slide in January. This marks the first time this has happened since the TerraForm Labs collapse in 2022.
Analysts suggest that stablecoins are the 'fuel' for crypto markets, and this contraction indicates capital outflows from the crypto market. This trend, combined with tepid demand for U.S.-listed spot Bitcoin ETFs, casts doubt on the sustainability of any potential recovery rallies for Bitcoin and the wider crypto market.
Furthermore, the growth of other stablecoins like USDCoin (USDC) has also stalled, although USDC has been more resilient than Tether, recovering its market cap to nearly $75 billion after a dip in January.
(Source：CoinDesk)