CandleFocus

How crypto’s liquidity engine grew after Terra’s collapse

The content discusses the impact of the collapse of a major cryptocurrency, Terra, on the liquidity of the crypto markets. Stablecoins, particularly Tether and USDC, experienced significant withdrawals during this period. However, the introduction of liquid staking and restaking tokens helped mitigate the losses by expanding their market cap. The combination of stablecoins, liquid staking, and restaking tokens is referred to as crypto's liquidity engine. Currently, stablecoin supplies have reached a new all-time high, and the liquidity engine is valued at around $300 billion.

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