On-chain transaction volume of stablecoins can reflect market sentiment, such as fear or greed. During market panic, investors often seek safety, driving stablecoin volumes higher as they move funds to stable assets or exit volatile positions. For example, spikes in USDT or USDC transactions often coincide with sharp market drops. Conversely, during greed-driven bull markets, stablecoin volumes may surge as investors use them to enter crypto markets or trade actively. However, volume alone isn't conclusive—other factors like liquidity, exchange flows, or macroeconomic events must be considered. Analyzing stablecoin flows alongside sentiment indicators like the Fear & Greed Index can provide deeper insights into market dynamics.