Morgan Stanley Research Report: The Combined Market Capitalization of $USDT and $USDC Begun to Fall Again

The combined market capitalization of the two largest stablecoins, $USDT and $USDC, has begun to fall again, a sign that quantitative tightening in the crypto financial system has resumed, Morgan Stanley said in a research report Tuesday. The decline in market cap of the two stablecoins, which paused in mid-August, has resumed, the report said. The market cap is now about 10% lower than its April peak. Availability and demand for stablecoins is an indicator of cryptocurrency market liquidity and the demand for leverage, the bank said. When market capitalization falls it is the crypto equivalent of quantitative tightening.