Stablecoin Market Resilience Amid Crypto Decline

The stablecoin market has shown remarkable resilience in the face of declining crypto markets. Despite recent outflows, the overall supply of stablecoins has stabilized, rather than entering a sustained decline.

According to CryptoQuant, Tether (USDT) and USD Coin (USDC) monthly liquidity outflows peaked at $8 billion in February but have since eased to around $4 billion. This suggests that capital is no longer leaving the ecosystem as aggressively as before.

However, exchange activity paints a different picture. During periods of strong market growth, USDT and USDC inflows surged, reaching $5.7 billion monthly and occasionally exceeding $15 billion on a 30-day basis. This coincided with Bitcoin's (BTC) strongest advances.

Since then, inflows have steadily weakened, falling to around $2.9 billion monthly. The annual average has declined from $4.47 billion to $3.87 billion, indicating a sharp slowdown in capital deployment.