USDT Market Cap Declines for Second Consecutive Month, Potentially Pressuring Market Recovery

Odaily News Tether's stablecoin USDT saw its market capitalization drop by 0.8% this month to $1.8361 trillion, continuing the approximately 1% decline trend from January. This marks the first time its market cap has contracted for two consecutive months since the Terra incident in 2022.

Analysis points out that stablecoins are considered a crucial source of liquidity for the crypto market, and changes in their scale are often seen as indicators of capital inflows and outflows. The continued decline in USDT's market cap may reflect capital outflows from the market, posing some pressure on the sustained rebound of Bitcoin and the overall market.

Data shows that after finding support near $60,000 in early February, Bitcoin's price rebounded to above $70,000 before retreating to around $65,000. Meanwhile, USDC's market cap has recovered somewhat from its low point at the beginning of the year, but overall it remains largely flat for the year. (CoinDesk)