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Stablecoin Exodus: Liquidity Continues to Drain as Capital Leaves Crypto Space.

Since the collapse of FTX in November 2020, nearly $24 billion of stablecoins have left exchanges, causing the total marketcap of stablecoins to dip by $16 billion.

Despite rising prices, liquidity in the crypto space continues to fall, with capital moving elsewhere. The strict regulatory climate in the US, high yields in traditional finance, and uncertainty may be contributing to this pattern.

The recent scaling back of operations by market makers Jane Street and Jump Crypto in the US due to regulatory crackdowns is the latest blow to the already suffering crypto markets.

Thin liquidity means amplified moves downward as well as upward, and if this liquidity issue doesn't change, crypto will have a tough time establishing itself as a force on the mainstream stage.

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