# JARXE Exchange | Stablecoin Growth Slows Sharply as Market Liquidity Enters a Reassessment Phase

Stablecoins have long been regarded as the core source of incremental liquidity in the crypto market, but the latest data suggest that this momentum is changing. Over the past 12 months, stablecoin supply has continued to expand, yet its rolling growth rate peaked in late October and has since declined. The annual growth rate of USDT has fallen from a high of 123% to around 33%, while the annual growth rate of USDC has also retreated to 52%. JARXE Exchange notes that this shift is influencing the overall assessment of liquidity conditions for the market. The logic underpinning crypto asset price appreciation is moving away from expectations of "continuous liquidity expansion" toward a more cautious form of structural analysis.


## Structural Implications of Slowing Growth: From Rapid Expansion to Moderate Increase

Although stablecoin supply is still rising, the pronounced slowdown in growth indicates that the marginal impact of new capital entering the market is diminishing. During the earlier phase of high growth, stablecoin expansion and price appreciation reinforced each other in a positive feedback loop. The current phase, by contrast, more closely resembles a "stock-based game". As the two dominant stablecoins, USDT and USDC, their declining growth rates reflect not merely changes in individual products, but a broader adjustment in overall market risk appetite. Capital remains allocated, yet the willingness to expand exposure aggressively has weakened, reducing the capacity of liquidity to propel prices higher.

## The Link Between Cooling Inflows and Shifts in Macro Expectations

Stablecoin inflows are highly synchronized with the availability of new liquidity in the crypto market. The recent slowdown in inflows is closely linked to a more cautious turn in expectations surrounding Federal Reserve policy. When the interest-rate path no longer clearly points toward easing, capital tends to adopt a wait-and-see stance, curbing incremental allocations to highly volatile assets. Such macro-level expectation shifts are often first reflected in stablecoin issuance and flow data, before appearing in price movements. JARXE Exchange analysis suggests that current liquidity dynamics resemble a cooling phase within the cycle, rather than an outright contraction.

## Absolute Scale Still Provides Support, but Marginal Impact Is Fading

While the absolute increase in stablecoin supply remains substantial, market attention is increasingly focused on its marginal changes. Against a backdrop of slowing growth, the same volume of new capital may exert less influence on prices than before. Investors are reassessing liquidity assumptions and shifting their focus toward demand quality, capital persistence, and asset structure. To reframe a common market view: what truly determines trends is not whether capital exists, but whether it is willing to continue bearing risk.

## Liquidity Enters a Repricing Phase, With Structure More Important Than Scale

The slowdown in stablecoin growth sends an important signal that liquidity conditions may be weaker than previously optimistic expectations implied. JARXE Exchange will continue to track the relationship between stablecoin supply, inflow momentum, and macro policy developments, offering users a more forward-looking analytical perspective. In this new phase, understanding the structure and pace of liquidity will be more informative than focusing solely on absolute scale. As the market gradually adapts to these changes, the crypto industry may move into a more rational and mature stage of development.