Stablecoin market cap and liquidity

The chart sums the circulating USD value of tracked stablecoins for each UTC day. It is used as a liquidity proxy for capital that can move into or out of crypto assets.

Rising stablecoin capitalization can mean new liquidity entering the ecosystem, but it can also reflect capital waiting on the sidelines. Falling capitalization can show withdrawals or capital being deployed elsewhere.

Read this metric together with crypto market cap excluding stablecoins: when both rise, fresh capital is usually supporting risk assets; when stablecoins rise while ex-stable cap falls, the market is often defensive.