Stablecoin Circulation Plunges: WSJ Warns of Crypto Deep Freeze

Stablecoins are crypto's lifeblood, but circulation's freezing up. WSJ flags it as a red alert for broader winter. Time to pay attention.

Wall Street Journal dives deep: volumes down sharply. Tether, USDC flows shrink amid risk-off vibes. It's not just noise – metrics mirror 2022 chills. Why now? Higher yields elsewhere suck liquidity. DeFi TVL dips, perp funding flips negative. Stablecoins fund 80% of trades; less means thinner books. Experts parse: is it deleveraging or flight to fiat? On-chain shows redemptions rising. Historical parallels? Bear markets started this way. Counterpoints exist – new entrants like RLUSD could revive. But caution reigns.

Markets pros and watchdogs brace. Sell-offs cascade, DeFi freezes, trading dries. Your exposure? Vulnerable without stables.

Heed the WSJ: stablecoin freeze signals trouble. Diversify, monitor metrics closely. Insight now saves pain later.