Bear Market Drains Stablecoin Reserves, Binance Gains Dominance

The bear market has taken its toll on stablecoin reserves, which have dropped by 20% since their peak in late 2025. According to CryptoQuant data, stablecoin reserves parked on centralized exchanges have shrunk to roughly $64 billion, down from a high of $80 billion.

This decline leaves less idle capital sitting ready to buy, with the remaining liquidity pooling into fewer venues. Binance has emerged as the clear winner in this trend, accounting for 68.5% of exchange stablecoin liquidity.

CryptoQuant Research noted that Binance's share of stablecoin reserves has increased significantly, despite its own absolute liquidity declining. This concentration of liquidity is a result of other major exchanges such as Coinbase, Bybit, and OKX experiencing sharper contractions in their balances.

The decline in stablecoin supply has also raised concerns about the market's available buying power. Historically, extreme declines in stablecoin supply have been accompanied by significant price drops in Bitcoin and the broader market.