Stablecoins Plummet as Largest Monthly Drop Since 2022 Signals Crypto Liquidity Concerns

The stablecoin market experienced its steepest monthly decline since May 2022, shedding a significant $6 billion in value. This marks the largest such drop since the infamous UST/Luna collapse, according to DeFiLlama data. Several factors contributed to this rapid retreat: falling stablecoin issuance, increased redemptions during volatile market conditions, and investors shifting their funds into riskier assets or exiting crypto altogether.