Stablecoin inflows to exchanges have doubled in a week. And yet, Binance’s reserves keep shrinking. One suggests rising market activity, the other points to fading buying power.
Stablecoins fuel rallies, but this time, the inflows are erratic – Fluctuating between $50 billion and $150 billion, while injecting volatility rather than confidence. Meanwhile, Binance’s reserves, a key gauge of market strength, have been in steady decline since January.
If this trend holds, it could mean traders are gearing up for something… or stepping back entirely.
Surging stablecoin inflows
Stablecoin inflows to exchanges have surged, doubling in just one week, yet the trend remains highly irregular. According to the given chart, for instance, inflows have been fluctuating between $50 billion and $150 billion, compared to previous accumulation phases where inflows stayed consistently around $50 billion.
Source: Cryptoquant
Historically, stable and sustained inflows are a sign of long-term accumulation, providing a foundation for market rallies. However, the recent volatility alludes to a more uncertain landscape – Large capital movements that can fuel short-term speculation, but also contribute to instability.
The 7-day moving average of inflows spiked well above the 90DMA, reflecting sudden liquidity injections rather than steady growth. With inflows hitting $149 billion, $145 billion, and $137 billion at key points, the market may be showing signs of heightened activity. However, whether this translates to lasting buying pressure remains unclear right now.
