Crypto sell-off fails to dent stablecoins as inflows double

Stablecoin inflows on exchanges have increased significantly in recent weeks, according to onchain data. The influx of stablecoin deposits has doubled from $51 billion in late December to $108 billion today.

The crypto market has suffered one of the deepest declines since 2022, triggering massive liquidations as leverage continues to unwind. However, a surprising trend in stablecoins has emerged amid the carnage. Onchain data shows that stablecoin inflows to exchanges have doubled in recent weeks, despite prevailing market conditions. 

Weekly average stablecoin inflows double amid the crypto meltdown

According to Darkfost, a crypto data analyst, the weekly average stablecoin inflows (7-day moving average) on the Ethereum network had dropped to $51 billion in late December last year. 

The analyst interpreted the decline as a lack of market demand. However, Darkfost shared a chart showing that inflows have doubled and are now above the 90-day average of $89 billion. The chart shows that the weekly average stablecoin inflows (7-day moving average) currently sit at $102 billion.

The analyst believes the rising stablecoin deposits in exchanges indicate that capital deployment has accelerated in recent weeks. However, Darkfost noted that overwhelming selling pressure remains too strong to be fully absorbed by buyers. Darkfost wrote that the inflow of stablecoins is a positive signal, indicating that investor interest is gradually returning to the crypto market despite the ongoing sell-off. The data shows that some participants are buying the dip, though Darkfost noted the dynamic still needs to strengthen.

The crypto market sell-off has sent Bitcoin tumbling to lows not seen since early October 2024. Data from CoinMarketCap shows that the crypto asset is currently trading at $64,875. BTC is down 9.08% in the last 24 hours, adding to its 7-day decline of 21.37%. Bitcoin has declined by more than 30% YTD and is down nearly 50% from its all-time high recorded on October 6, 2025.  

BTC’s price drop triggers capitulation as daily Bitcoin mining revenue falls to yearly lows

A previous Cryptopolitan report noted that the declining BTC prices have triggered capitulation. The report noted that Bitcoin capitulation has returned to levels seen during the October deleveraging. It noted that the recent rapid unwinding of BTC led to forced selling. The recent market sell-off is the second-biggest in the last two years and that all wallet cohorts have sold the digital asset in the last month.

The sell-off also triggered miner capitulation as production costs rallied above BTC’s market value. Data from Checkonchain revealed the average cost to produce one bitcoin is around $87,000, yet BTC trades below $65k at the time of this publication. The report highlighted that when Bitcoin prices fall below production costs, it typically signals an ongoing bear market.

The daily revenue from Bitcoin mining has also declined to yearly lows amid the crypto turmoil. The daily Bitcoin mining revenue fell to $28 million, the lowest level seen this year amid price and margin collapse. Many Bitcoin mining firms are powering down their mining equipment. Data from Hashrate Index shows that the Bitcoin hashrate index has been on a steep decline since last year, from $64 USD/PHS/DAY recorded on July 11 to $27 USD/PHS/DAY recorded on February 6.  

ETF outflows have exerted intense pressure on BTC’s price. Data from the U.S. spot ETF tracker SosoValue shows that investors have drawn more than $1.25 billion from the funds over the last three days, with February 4 recording the most significant outflows, totaling $544.94 million. On Thursday, the funds witnessed negative flows of $434.15 million, following $272.02 million on Tuesday. 

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