Stablecoin Supply Growth Slows Amid Fed’s Cautious Outlook
The expansion of stablecoin supply has slowed as market participants respond to the Federal Reserve’s cautious stance on monetary policy. Issuers are adjusting issuance strategies, reflecting increased regulatory scrutiny and economic uncertainty.
In terms of money supply, this slowdown reduces the rate at which new digital dollars enter circulation, potentially limiting liquidity in crypto markets. With fewer stablecoins circulating, trading and DeFi activity could be slightly constrained, while traditional market participants may see less rapid capital movement between fiat and digital assets.
