Crypto Market Correction Leads to $663 Million Solana Stablecoin Outflow

The cryptocurrency market experienced a significant decline last week, leading to a contraction in the total stablecoin supply and a substantial capital rotation between major blockchain networks. Bitcoin dipped from its recent highs before recovering, while Ethereum and Binance Smart Chain (BSC) saw notable inflows of stablecoins. Conversely, Solana experienced a major outflow of stablecoins, indicating a shift in capital away from its ecosystem.

During the market correction, the total market capitalization of stablecoins decreased by $339 million. Solana was the most affected, with a $663 million outflow of stablecoins USDT and USDC. Other networks, including Arbitrum and Avalanche, also saw declines in stablecoin supply, losing $163.7 million and $121.6 million, respectively. Ethereum and BSC, on the other hand, attracted inflows of $312 million and $300.1 million, respectively. This trend suggests that capital moved from Solana to Ethereum and BSC during the market correction, as reflected in a 36.04% decline in Solana’s daily active addresses.

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 in Bitcoin ETFs remained strong, with a net total of 9,904 BTC valued at approximately $1.04 billion added. 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.

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.