- The stablecoin market showed resilience amid the market turmoil, revealing true market sentiment.
- A decline in outflows signaled the possibility of a bullish reversal, raising hopes of a market rebound.
The ebb and flow of stablecoins provide a captivating insight into the mood of the market at any time. Although the market may seem stormy, the real sentiment lies in the intricate dance of stablecoins.
Recent data attests to its behavior, vividly showing the real state of the market.
Stablecoin Inflow Gains Strength
Examining the Netflow data provided by cryptoquantification offered valuable insight into the general movement of stable assets. From a broad perspective, it became apparent that outflows prevailed, indicating declining liquidity within the space.
However, the data for May 13, glass node presented a different angle by considering the monthly supply change from a higher time frame point of view.
Revealed a drop in stablecoins exits, indicating a glimmer of hope as demand and capital return to the digital asset landscape.
Source: Glassnode
As a result of the Moon collapse and the recent FTX accident, there was a significant exodus from stablecoins.
Market participants quickly redeemed their tokens following the LUNA collapse, resulting in a maximum monthly outflow of -$8.6 billion. This massive move caused severe supply depletion.
Current strength of the stablecoin market
According to the latest data from CoinMarketCapthe stablecoin market boasted a market capitalization of over $130.5 billion.
In addition, the volume of operations increased to exceed 18.700 million dollars. Within this landscape, Tie [USDT] it was in the lead in market capitalization and trading volume. As of this writing, tying of market capitalization exceeded $82.8 billion.
Additionally, it had a 24-hour transaction volume of more than $14.6 billion, exceeding more than half of the total transaction volume on record.
In the second position, USDC currency [USDC] cemented its position as the second largest stablecoinswith a market capitalization of nearly $30 billion and a 24-hour trading volume of $1.7 billion.
Incoming stable entry?
While we have not yet witnessed a resurgence of mainstream trends stablecoins Inflows, the recent decline in outflows suggests that we may be gradually approaching that level.
As the outflow declines and capital begins to flow back into the space, there is a chance of a shift in general sentiment towards a more bullish outlook. This, in turn, could pave the way for a market rebound, offering renewed hope and positive momentum.
