Stablecoin transfers into crypto exchanges have climbed to roughly $98 billion, more than doubling recent levels as market participants reposition during an extended sell-off.
According to CryptoQuant's analysis, the amount is higher than the 90-day average of roughly $89 billion. Even though price declines continue to outweigh buying interest, analyst Darkfost said the increase suggests faster capital movement into the market.
The analyst pointed out that although increased inflows indicate that there are funds available on the sidelines, the current selling pressure is still strong and has not yet been completely offset by incoming capital.
Tight liquidity and high levels of uncertainty have caused problems for the larger cryptocurrency market. Bitcoin has dropped over 10% in the last few days, hovering around $64,000 and getting closer to a 50% decline from its peak in October.
Some investors seem to be adding exposure selectively in spite of the pressure. Even though participation is still unequal, Darkfost characterized the inflow trend as positive, pointing out that capital is progressively returning.
There are conflicting signals in the stablecoin market, according to market data. Messari reports that ongoing supply cuts in USDT and USDC are primarily to blame for the stablecoin market capitalization's 1% weekly decline to $305.1 billion. Smaller stablecoins like USDS and USD1 increased their relative market share at the same time.
With a trading volume of about $257.45 billion, up roughly 60% from the previous day, Tether's USDT, the largest stablecoin by market capitalization, traded close to $0.99 over the course of the last day.
