Investment company Matrixport has drawn attention to the liquidity problem in the cryptocurrency market! Here are the details.

MEVictim · 2025-12-16T11:26:40+00:00

Matrixport highlights a declining growth rate in stablecoin supply, suggesting that the liquidity conditions in the cryptocurrency market are weakening. This trend, influenced by the Federal Reserve's cautious monetary policy, may increase market volatility and affect investor behavior.

MEVictim

2025-12-16 11:26:40

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Source: CryptoNewsNet Original Title: Investment company Matrixport has drawn attention to the liquidity problem in the cryptocurrency market! Here are the details. Original Link: Matrixport shared a noteworthy assessment regarding liquidity conditions in the cryptocurrency markets. In a statement, the company emphasized that while the absolute supply of stablecoins continues to increase, the rate of growth has slowed significantly.

According to Matrixport, the cumulative growth rate in stablecoin supply over the past 12 months peaked at the end of October and has since declined.

The company stated that there was a simultaneous weakening not only on the supply side, but also in stablecoin inflows and new liquidity flows into the crypto market.

This situation is said to be a contributing factor to the failure of cryptocurrency prices to gain the expected momentum, especially in recent months. Matrixport argued that the current trend in the markets indicates a more cautious liquidity environment compared to previous periods.

The statement noted that the Federal Reserve’s shift to a more cautious stance in monetary policy was also a significant reason for this weakening. The Federal Reserve’s more cautious signals regarding interest rate cuts are limiting global risk appetite and slowing the flow of capital into the cryptocurrency market. Matrixport notes that this situation is directly reflected in the growth dynamics of stablecoins.

While the company acknowledges that the absolute increase in stablecoin supply is still significant, it warned that the overall liquidity environment may be weaker than previously anticipated. This could lead investors to be more selective in the short term and increase market volatility.

Analysts point out that stablecoin growth is a key indicator of liquidity for the cryptocurrency market, and that any slowdown in growth should be closely monitored for its impact on the overall health of the market. Matrixport’s assessment suggests that a cautious outlook may prevail in the cryptocurrency markets in the coming period.

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PensionDestroyer

· 2025-12-18 09:47

Stablecoins are declining? Now it's time to see who can withstand the volatility.

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ProposalManiac

· 2025-12-17 15:59

Liquidity exhaustion, to put it simply, means the market equilibrium has been broken. The Federal Reserve tightening policies and the slowdown in stablecoin growth are just like the failure case in 2018—mechanism design didn't keep up, and in the end, retail investors are the ones who get hurt.

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BakedCatFanboy

· 2025-12-16 11:50

Is the growth rate of stablecoins slowing down? Isn't this a sign of contraction that should have been seen earlier? The signs of liquidity exhaustion are becoming more and more obvious, and we really need to be extra vigilant. The Federal Reserve's move has caused the entire market to become anxious. Honestly, it's still a matter of not having enough money; institutions are all on the sidelines. Who can survive and come out of this wave will determine the outcome; it feels like a shakeout is coming. To be honest, entering the market now really depends on luck, with such poor liquidity, who dares to hold heavy positions.

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WenMoon

· 2025-12-16 11:45

Stablecoins drop, then drop. Anyway, if I didn't catch this round, I'll wait for the next one and endure slowly.

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CryptoSurvivor

· 2025-12-16 11:41

The decline in stablecoin growth rate... to put it simply, the market is shrinking. The Federal Reserve is tightening again, so retail investors probably need to be more cautious. --- Once liquidity tightens, volatility jumps rapidly. Only true warriors dare to leverage up at this time. --- Matrixport's recent warning feels like a message saying "Everyone, get ready, we might be in for a beating." --- The slowdown in stablecoin growth essentially means no one dares to take the risk, right? --- It's the Federal Reserve's fault again, and our crypto market bears the brunt. When can we finally catch a break? --- To put it simply, it's still a money crunch. Wishing everyone good luck with their wallets. --- Reduced liquidity = you can't even run away if you want to. I know this feeling well.

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TokenStorm

· 2025-12-16 11:32

Slowing growth of stablecoins? On-chain data has been telling the story for a while. I backtested the liquidity curve over the past three months, and the volatility coefficient skyrocketed... But isn't this also the best arbitrage opportunity? [Dog head]

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