CryptoQuant Warns Stablecoin Buying Power Still Missing From Market

Stablecoin buying power has not returned to the cryptocurrency market at any meaningful scale, CryptoQuant data shows. The analysis firm tracked a modest improvement in exchange net flows for ERC-20 stablecoins, which turned positive near $62.8 million after earlier outflows. That figure stands far below the multibillion-dollar deposits that characterized earlier stages of the cycle.

Minting and redemption activity both hover around $1.5 billion, offering little evidence that total stablecoin supply is expanding. The market is receiving a trickle of new liquidity, not a decisive capital influx.

A more revealing metric is the stock of stablecoins already sitting on trading platforms. ERC-20 stablecoin balances on exchanges have fallen to roughly $61.8 billion, CryptoQuant said. That is well below the late-2025 peak above $75 billion and still beneath the declining 100-day moving average. The reserve contraction continues even as net flows have turned positive, creating a divergence between short-term deposits and the broader liquidity trend.

With fewer stablecoins positioned on exchanges, investors have less readily available capital to deploy when market opportunities arise or when volatility spikes. That shortage could limit buying flexibility during sharp sentiment shifts. A rally that depends on new deposits rather than existing reserves may prove more fragile, especially if leverage is needed to sustain it.