Stablecoin Market Cap Drops $2.24B in 10 Days
The stablecoin market cap fell by $2.24B in 10 days as investors rotate funds into gold and silver, according to Santiment.
- Stablecoin market loses $2.24B in just 10 days
- Investors shift capital toward gold and silver
- Market signals risk-off sentiment amid uncertainty
In the past 10 days, the stablecoin market has seen a sharp $2.24 billion drop in its overall market capitalization, according to on-chain analytics firm Santiment. This downturn signals a significant capital outflow from digital dollars, suggesting that investors are seeking safer havens amid rising market uncertainty.
Stablecoins, such as USDT and USDC, are typically used as a hedge during volatile periods or as a gateway to move in and out of crypto positions. A drop in stablecoin supply often implies that investors are either exiting the crypto markets or reallocating their capital elsewhere — and right now, it appears that “elsewhere” is gold and silver.
Gold and Silver Gain Attention
Santiment’s data reveals an increasing flow of funds into precious metals like gold and silver. This shift suggests that investors are preparing for a more defensive stance, favoring traditional stores of value over digital assets in the short term.
With inflation concerns, geopolitical tensions, and global market jitters rising, many are retreating from risk-on assets such as cryptocurrencies. The move to gold and silver indicates that investors are leaning into tried-and-tested safe havens, possibly anticipating a wider market correction.
Risk-Off Sentiment Builds in Crypto
The decline in stablecoin market cap also serves as a barometer for market sentiment. When stablecoin supply grows, it often points to increased buying power waiting on the sidelines. However, a shrinking supply signals the opposite — that liquidity is leaving the system.
If this trend continues, the crypto markets may face additional headwinds, especially if confidence in near-term rallies remains low. For now, all eyes are on whether this capital rotation is a temporary repositioning or the start of a broader shift out of digital assets.
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- Stablecoin Market Cap Drops $2.24B in 10 Days
