The crypto market continues to face intense selling pressure as Bitcoin and Ethereum struggle to regain key psychological levels. The repeated rejection near areas of resistance has reinforced the sense of caution across the sector, with investors growing more defensive after months of declining liquidity and price volatility. Although correction phases are typical after a strong bull market advance, the persistence of downward pressure suggests that a longer period of adjustment may be unfolding.
On-chain data provides additional context for this shift in market dynamics. According to a recent analysis, growth in stablecoin reserves peaked shortly before the price decline in late 2025. In the 30 days leading up to November 5, reserves increased by approximately $11.4 billion, reflecting the strong liquidity availability and risk appetite of the time. However, this trend quickly reversed as market conditions deteriorated, with reserves falling by approximately $8.4 billion on December 23 as the bear phase began to take shape.
More recently, the pace of capital outflows has moderated, with reserves falling by about $2 billion over the past month. This slowdown may indicate a stabilization of liquidity conditions, but it does not yet confirm a lasting recovery. For now, the market remains sensitive to macroeconomic conditions, capital flows and investor confidence.
Stablecoin Liquidity Concentration Highlights Binance’s Dominant Role in the Market
Other major exchanges lag significantly in terms of stablecoin reserves. OKX holds about $9.5 billion, or about a 13% share, while Coinbase holds about $5.9 billion, or about 8%. Bybit follows with almost $4 billion, which equates to around 6% of the exchange’s stablecoin liquidity. These balances are distributed primarily across the Ethereum and TRON networks, which continue to serve as the primary infrastructure layers for stablecoin settlement.
Within Binance itself, liquidity remains predominantly focused on USDT. Around $42.3 billion of its reserves are held in USDT, reflecting a 36% year-over-year increase from around $31 billion. In contrast, USDC reserves stand at nearly $5.2 billion and have remained broadly stable over the same period, suggesting stable but limited growth compared to USDT’s dominance.
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