Binance recorded more than $1 billion in net stablecoin inflows in August, and CryptoQuant analyst Darkfost said the increase points to a modest recovery in exchange liquidity. The monthly number, however, masks a longer outflow trend. Year to date, Binance has posted roughly $5.1 billion in net stablecoin outflows, a figure equal to 71% of the network's stablecoin flows. Over the same period, stablecoin reserves at major exchanges fell by more than $16 billion. Darkfost said the steady stream of stablecoins leaving exchanges shows that liquidity is exiting the crypto market altogether, rather than idle funds waiting to be redeployed later. The root cause, in his view, is demand that has stayed weak for an extended stretch, which has kept pushing exchange stablecoin reserves downward. Even with funds continuing to move out, bitcoin rose roughly 25% in August and climbed above $75,000. Darkfost warned that should demand fail to recover on a sustained basis, BTC could enter another adjustment phase. The analyst's comments were reported by ChainCatcher.
CryptoQuant analyst Darkfost said Binance recorded more than $1 billion in net stablecoin inflows in August, in what he described as a modest recovery in exchange-side liquidity.
The monthly rebound sits inside a larger outflow trend. Year to date, Binance has seen net stablecoin outflows of roughly $5.1 billion, a figure that represents 71% of the network's stablecoin flows. Stablecoin reserves across major exchanges fell by more than $16 billion over the same stretch, Darkfost noted.
The steady stream of stablecoins leaving exchanges shows that liquidity is exiting the crypto market rather than sitting idle and waiting to be redeployed, the analyst said. Demand that has stayed persistently weak has pushed exchange stablecoin reserves lower.
Even with funds continuing to move out, bitcoin rose roughly 25% in August and climbed above $75,000. Darkfost cautioned that if demand does not recover on a sustained basis, BTC could re-enter an adjustment phase.
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