Recent fluctuations in the cryptocurrency market have led to a strong demand for stablecoin liquidity. Kaiko's market analysis shows that since late October, the cost of borrowing USDT and USDC from Binance has doubled, reflecting an increased demand for leveraged positions in both the spot and futures markets. Additionally, the market capitalization of stablecoins has also reached an all-time high, indicating a market preference for stablecoins.

Meanwhile, stablecoin lending rates on Aave V3 have increased in November. The cumulative trading volume delta (CVD) for USDT-USD shows a significant increase in net buying since November, suggesting that traders are shifting from fiat currency to stablecoins. The market dominance of USDT slightly declined after peaking in November.

The trading volume of euro-backed stablecoins has surged tenfold in the past month, demonstrating an increased market demand for diversified stablecoins. Although trading volume slightly decreased last week, the overall trend remains strong.