- Stablecoin flows shift as Ethereum and BSC gain while Solana sees major outflows.
- TVL drops across top chains; Avalanche and Hyperliquid show rising user activity.
- Bitcoin ETFs gain $1B inflows; whale activity varies with significant ETH and BTC trades.
The cryptocurrency market experienced a major decline last week, a move that corresponded with a significant contraction in the total stablecoin supply and a large-scale capital rotation between major blockchain networks. While Bitcoin dipped from its recent highs before recovering, data shows institutional inflows into Bitcoin ETFs remained strong, and large whale investors actively accumulated assets during the sell-off.
The total market capitalization of stablecoins contracted by $339 million during the week, with major shifts observed across the top 15 blockchain ecosystems.
Solana Sees Major Stablecoin Outflow
The most significant capital movement occurred on Solana, which experienced a $663 million outflow of stablecoins USDT and USDC. Other networks also saw notable declines, with Arbitrum and Avalanche losing $163.7 million and $121.6 million in stablecoin supply, respectively.
Related: Crypto Market Faces New Risks from the Escalating U.S.-Iran Conflict: Report
Conversely, Ethereum and Binance Smart Chain (BSC) were the primary beneficiaries of the capital rotation, attracting inflows of $312 million and $300.1 million, respectively. This data suggests a flight of capital from the Solana ecosystem toward Ethereum and BSC during the market correction. This trend was reflected in a 36.04% decline in Solana’s daily active addresses.
Institutional and Whale Accumulation Continued
Total value locked (TVL) decreased across all top 10 blockchain networks during the week. The largest TVL reductions were seen on TRON (-11.38%) and SUI (-10.28%). User activity patterns varied; most chains experienced declines in daily active addresses, including Base (-57.02%) and Solana (-36.04%).
However, Avalanche and Hyperliquid registered growth in daily active addresses, increasing by 272.15% and 56.37%, respectively. Transaction volumes followed a similar mixed pattern, with Arbitrum and Hyperliquid recording daily volume increases of 38.83% and 42.67%.
Institutional Investment and Whale Activity
Bitcoin ETFs showed continued inflows, adding a net total of 9,904 BTC valued at approximately $1.04 billion. The iShares (BlackRock) Bitcoin Trust was the largest contributor, with inflows of 11,677 BTC ($1.23 billion). Other Bitcoin funds, including Bitwise and Valkyrie, also reported positive inflows, whereas some ETFs like Fidelity Wise Origin and ARK 21Shares recorded outflows.
Ethereum ETFs experienced mixed movements, with total net inflows of 14,038 ETH ($33.86 million). The iShares Ethereum Trust led gains, adding 18,462 ETH ($44.53 million). Meanwhile, the Grayscale Ethereum Trust and Fidelity Ethereum Fund saw withdrawals of 4,110 ETH and 5,993 ETH, respectively.
Related: Stablecoin Market Hits Record $228 Billion as Global Banks and Corporations Pile In
Whale activity showed variability. MicroStrategy made a smaller purchase of 245 BTC ($26 million), down from prior acquisitions. Metaplanet increased its holdings by 1,111 BTC ($116.6 million). A prominent whale accumulated 47,071 ETH ($114 million), extending a series of purchases totaling 132,536 ETH ($333.8 million) at an average price near $2,518. Additionally, a new wallet was created that withdrew 50,256 ETH ($112.9 million) from the Binance exchange.
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