Binance’s stablecoin reserves have plunged by about $9 billion in three months, signaling a sustained drop in market liquidity and a cooling risk appetite among crypto traders, data from on-chain analytics firm CryptoQuant shows. From November to mid‑February, Binance’s stablecoin balance fell from roughly $50.9 billion to $41.8 billion. The exchange logged three straight months of net stablecoin outflows — the longest run since the 2023 bear market. Monthly outflows accelerated over the period: roughly $1.8 billion left in December, about $2.9 billion in January, and nearly $3 billion had flowed out of Binance by mid‑February. Why it matters: stablecoins are the “dry powder” of crypto markets — readily deployable capital used for trading, arbitrage and liquidity provision. Large withdrawals from exchange stablecoin coffers typically point to capital exiting exchange ecosystems (rather than being redeployed into other crypto assets), reducing exchanges’ capacity to absorb price swings and pushing up slippage and execution costs. CryptoQuant and market observers link the trend to heightened global uncertainty and geopolitical tensions, which have driven investors toward more defensive positioning. As of the latest data, there are no clear signs the outflows are stabilizing — a development that could keep pressure on market liquidity and amplify volatility if it continues. Read more AI-generated news on: undefined/news

#CZ