Stablecoin Inflows Hit $98B as Crypto Market Faces Liquidity Crunch

• The analyst has referred to the surge in stablecoin inflows as a positive sign, as it reveals increasing investor interest in having exposure to the market.
• Tether (USDT), the biggest stablecoin by market capitalisation, increased to $0.99 in the last 24 hours having $257.45 billion in volume, a 60% surge. 

An analyst, Darkfost from CryptoQuant, has shared that at a time when crypto sell-offs boost, the inflows of stablecoin to exchanges have double-folded to $98 billion from the last levels. 

The increase of stablecoin inflows has crossed the 90-day average of $89 billion. The analyst further notes in the blog that this indicates that capital deployment has boosted in the past few weeks and the market clearly needs it. Even so, the selling pressure remains very robust to be completely absorbed. 

In the current scenario, the crypto market is going through a delicate phase indicated by a structural lack of liquidity at the time of persistently high volatility. BTC plunged more than 10% towards $64,000 on February 6 and is gradually moving towards 50% correction from its October all-time high. 

The drop has taken BTC to its lowest level since late 2024 and has reversed momentum that had built after Donald Trump’s election win, when he indicated a more supportive stance on crypto at the time of the campaign trail. 

The Positive Sign for the Market 

The analyst has referred to the surge in stablecoin inflows as a positive sign, as it reveals increasing investor interest in having exposure to the market. Besides this, it indicates that the capital is starting to return to the virtual asset space. 

The dynamics still need to be robust; however, some participants are so far purchasing this dip.

Mainly, choose mid-cap stablecoins such as USDS and USD1 carried on to gain share; at the same time, overall stablecoin market capitalisation slipped 1.0% WoW to $305.1 billion, influenced by carried-on supply contraction in USDT and USDC, as per Messari. 

Tether (USDT), the biggest stablecoin by market capitalisation, increased to $0.99 in the last 24 hours, having $257.45 billion in volume, a 60% surge. 

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