Analysts: Total market cap of stable coins falls to its lowest level in over a year, shrinking by approxi

Stablecoin total market capitalization has fallen to its lowest level in over a year, declining from roughly $280 billion in April to $263 billion as of November 3, a drop of about $17 billion, or 6%, over six months, according to on-chain analyst Darkfost. Binance still accounts for approximately 70% of stablecoin supply on centralized exchanges, but the 90-day moving average of stablecoin market cap on the platform has declined markedly, falling from about $51 billion to $34 billion after the exchange's security breach, during which roughly $3 billion in stablecoins flowed out. Darkfost attributes the contraction to weak demand and insufficient new liquidity in the crypto market, compounded by recent geopolitical and economic events plus multiple security incidents, suggesting investors are reducing risk exposure. Watch for whether stablecoin supply stabilizes or continues to shrink, as it serves as a key proxy for crypto market liquidity, and monitor Binance's stablecoin balances for further outflows following the attack.