Stablecoin Inflows Have Doubled to $98B Amid Selling Pressure – Report

At a time when crypto sell-offs intensify, stablecoin inflows to exchanges have doubled to $98 billion from previous levels, CryptoQuant analyst Darkfost noted.

The rise in stablecoin inflows have surpassed the 90-day average of $89 billion.

“This suggests that capital deployment has accelerated in recent weeks, and the market clearly needs it,” the analyst wrote in a blog. “Nevertheless, selling pressure remains too strong to be fully absorbed.”

The crypto market is currently experiencing a delicate phase marked by a structural lack of liquidity amid persistently high uncertainty. Bitcoin has plummeted over 10% toward $64,000 on Friday and is slowly approaching a 50% correction from its October all-time high.

Some Participants are Already Buying This Dip

Analyst Darkfost described the increase in stablecoin inflows as “a positive signal”, as it shows increasing investor interest to gain exposure to the market. Besides, this shows that capital is beginning to return to the digital asset space.

“This dynamic still needs to strengthen, but some participants are already buying this dip.”

Particularly, select mid-cap stablecoins like USDS and USD1 continued to gain share, while total stablecoin market cap declined 1.0% WoW to $305.1 billion, driven by continued supply contraction in USDT and USDC, according to Messari.

Tether (USDT), the largest stablecoin by market cap, rose to $0.99 in 24 hours with $257.45 billion in volume, a 60% increase.

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