Stablecoin Inflows Rebound, but Momentum Fades Rapidly

Stablecoin inflows have returned to exchanges after nearly four months of outflows. The turnaround, which began on September 1, marked a significant shift from the previous 113-day period of net outflows. According to data, exchange stablecoin inflows flipped positive on September 1, with a $13.85 million net inflow recorded that day.

However, the rebound has been short-lived. Net inflows fell by approximately 51% in just two days, from $13.85 million on September 1 to $6.85 million by September 3. On-chain analyst Axel Adler Jr. noted this decline in a tweet, stating that the rebound is losing momentum.

Adler also pointed out that the Stablecoin Supply Ratio (SSR) has improved modestly, indicating an increase in stablecoin buying power relative to Bitcoin. The SSR stood at 13.84 on September 1, with its 90-day, 200-day, and 365-day oscillators remaining above zero.

Adler emphasized that a sustained liquidity reversal would require both expanding net inflows and declining SSR oscillators. As of now, the data does not confirm a significant expansion in liquidity, but rather a temporary shift from outflows to inflows.