While crypto markets face persistent sell-offs, on-chain data reveals a contrasting trend: stablecoins are flooding into exchanges at record levels. CryptoQuant analyst Darkfost reports that weekly stablecoin inflows nearly doubled to $98 billion as of July 23, up from $51 billion in late December 2025, surpassing the 90-day average of $89 billion. The spike suggests some investors are quietly building cash reserves, waiting to buy the dip as Bitcoin attempts to avoid a 50% correction from its October all-time high.
Dip-Buying Signals Amid Relentless Selling Pressure
“This dynamic still needs to strengthen, but some participants are already buying this dip,” Darkfost noted. However, he cautioned that selling pressure remains strong and has not been fully absorbed. While the inflow surge reflects cautious capital deployment, the market still requires sustained support for a meaningful recovery. The stablecoin buildup provides potential “ammunition” for a bullish reversal once prices find a stable floor.
It is worth noting that stablecoins held on exchanges can also be used for hedging or arbitrage, so the data alone does not guarantee an imminent rally. The timing coincides with Bitcoin approaching a key support zone, making the next few sessions critical.
11 Major European Banks Form Qivalis for Euro-Pegged Stablecoin
On the institutional front, a consortium of 11 European banks — including BBVA, BNP Paribas, CaixaBank, ING Group, and UniCredit — has launched a new entity called Qivalis to develop a euro-pegged stablecoin. The project will operate under the EU's Markets in Crypto-Assets regulation and is awaiting authorization from the Dutch central bank. The stablecoin is expected to go live in the second half of 2026.
Qivalis emphasizes security, governance, and customer protection, aiming to enable faster and cheaper payments, digital asset settlements, and simultaneous euro-to-digital-asset exchanges. This move marks a significant step by traditional finance to compete with DeFi offerings within a fully regulated framework.
U.S. Senator Urges Banks to Embrace Stablecoins, but Legislation Stalls
In the United States, Senator Cynthia Lummis (R-WY) is pushing banks to adopt stablecoins as a new product line. “I'd like to see the banks embrace this rather than resist it,” she stated. Lummis argues stablecoins offer fresh business opportunities and can integrate into mainstream banking.
Nevertheless, negotiations over the broader market structure bill remain deadlocked. Banks have warned that stablecoin rewards could trigger deposit flight from traditional accounts, particularly at smaller community banks. This political friction leaves the stablecoin regulatory landscape in the U.S. uncertain, even as global momentum accelerates.