The market capitalization of stablecoins, a gauge of liquidity in the digital-asset market, has recently rebounded. But the scale of inflows is still too small to drive Bitcoin to a new record high, according to an analysis.

CryptoQuant contributor Darkfost wrote on Oct. 3 that stablecoin market capitalization has increased by about $4 billion since September, recovering to roughly $270 billion.

Still, that rebound is modest compared with the liquidity that had previously left the market. Stablecoin market capitalization has fallen by about $14 billion since its peak in May. The increase since September amounts to about 29% of that decline.

Darkfost wrote that stablecoin market capitalization is struggling to recover, meaning liquidity flowing into the crypto market remains insufficient.

While recent trends show signs of reversing, the recovery is still weak, he added. More liquidity needs to enter the market for Bitcoin to reach a new high.