@alstontitus
Flows into or out of major stablecoins can presage risk preference shifts: accumulation of stablecoins (rising supplies on exchanges or net inflows) often signals de-risking or a dry powder build for later deployments; conversely, stablecoin outflows into spot or futures typically indicate risk-on allocation. Metrics like the Stablecoin Supply Ratio or exchange stablecoin balances are used as contrarian and liquidity gauges. Sudden minting spikes tied to shadow issuers or concentrated on one exchange can also imply leverage or arbitrage activity, flagging systemic stress. Tracking directional stablecoin flows across top issuers offers a near-real-time read of market positioning.
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