Wintermute mentioned inflows throughout stablecoins, ETFs and digital asset treasuries have plateaued, leaving crypto liquidity recycling internally.
Crypto market-maker Wintermute mentioned the digital asset market’s present cycle is being pushed by “recycled liquidity,” as inflows from its three major funding sources have slowed.
In a Wednesday weblog submit, Wintermute argued that liquidity stays the defining power behind each crypto cycle. The market maker mentioned that whereas blockchain continues to be adopted, the circulate of recent capital has decelerated in latest months.
The corporate pointed to stablecoins, exchange-traded funds (ETFs) and digital asset treasuries (DATs) because the three main conduits for crypto liquidity, warning that liquidity influx in all three has reached a plateau.
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