Wintermute Analyst: Liquidity in the crypto market is slowing down, with significant weakening in the momentum of major funding channels such as stablecoins, ETFs, and DAT.

On November 6, PANews reported that Wintermute analyst Jasper De Maere analyzed that liquidity in the crypto market is slowing down. The main funding channels such as stablecoins, ETFs, and Digital Asset Trusts (DATs) are showing weakened momentum, leading the market into a “self-funding” phase rather than an expansion cycle. Although global liquidity remains strong, high SOFR rates are attracting funds into government bonds rather than cryptocurrencies.

Data shows that since the beginning of 2024, the total size of DATs and ETFs has grown from $40 billion to $270 billion. Stablecoin issuance has doubled from $140 billion to $290 billion, but signs of growth stagnation are already evident.

Currently, market funds are mostly circulating internally, with a lack of new external capital injection. This results in short-lived rallies and increased volatility. Moving forward, if stablecoins are issued again, ETFs are created, or DATs are actively issued, it would signal a macro liquidity re-entry into the crypto market. Otherwise, the market will continue to be in an internal capital cycle.