Cryptocurrency market liquidity shortage persists, with stablecoin market cap on CEX platforms dropping to $41.4 billion

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On February 24, due to the Federal Reserve’s tightening policies and weak capital inflows, cryptocurrency liquidity shortages continued. The stablecoin holdings on CEX platforms decreased by 18.6% over the past three months, from $50.9 billion to the current $41.4 billion, a decline of approximately $10 billion. Despite the reduction, CEX platforms still account for about 64% of all stablecoin reserves across trading platforms. The size of stablecoin reserves on trading platforms typically adjusts based on investor demand; a decrease in reserves usually indicates that investors are converting cryptocurrencies back into fiat currency rather than holding stablecoins in anticipation of re-entry.

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