Crypto: Binance Stablecoin Reserves Have Sunk 19% Since November 2026

Binance stablecoin reserves have fallen 18.6% in three months as tightening Fed policy and weak inflows extended the crypto liquidity drought.

Stablecoin reserves on the world’s largest crypto exchange, Binance, have fallen back to levels not seen since October amid a crypto liquidity drought, according to CryptoQuant.

The stablecoin reserves are down 18.6% since November, dropping around $10 billion from $50.9 billion to current levels of $41.4 billion, said CryptoQuant analyst Darkfost on Monday.

Stablecoin reserves on exchanges “typically adjust based on investor demand,” and crypto “liquidity dynamics can be proxied through stablecoin flows,” the analyst noted.

Despite the decline, Binance still accounts for roughly 64% of total stablecoin reserves across all exchanges.

However, when a platform of this scale begins to reflect such a shift in investor behavior, “it becomes a signal worth monitoring,” they cautioned.

A contraction in exchange stablecoin reserves generally means that investors are removing liquidity from crypto markets by converting back to fiat rather than leaving stablecoins on the sidelines for re-entry.

“One of the key headwinds currently weighing on the space is the lack of incoming liquidity,” commented Darkfost, who cautioned that “from a broader cross-market liquidity perspective, conditions are unlikely to improve in the near term.”

Related: Bitcoin’s tech stock divergence is a ‘fire alarm’ for fiat: Arthur Hayes

The total stablecoin market capitalization has plateaued at just over $300 billion since October, according to DeFiLlama. This has followed two years of solid gains that saw 150% increases in stablecoin circulation.

Source: CoinTelegraph