The cryptocurrency market is experiencing a liquidity crunch as the supply of stablecoins shrinks and trading volumes decline. Since November 15, the stablecoin sector has seen a reduction of approximately $840 million, with significant market cap drops in tokens such as Ethena’s USDe, csUSDL, srUSD, and USD3. The stablecoin economy currently stands at $303.406 billion, down from $304.246 billion just days ago. Tether’s USDT has decreased by $224 million in the past 24 hours, while Circle’s USDC, despite gaining $19 million recently, has lost $1.13 billion over the last week. Yield-bearing stablecoins have been particularly affected, with some losing over 70% of their market cap. This contraction in stablecoin supply, coupled with weak trading volumes, has left order books thin, increasing the market's susceptibility to price volatility from minor selling pressures.