
According to recent data from Glassnode, an on-chain analytics firm, the two largest cryptocurrencies by market capitalization, have driven the most capital inflows in the crypto market. The recent market events have fueled a trail of significant inflows for Bitcoin and Ethereum.
Data suggests that Bitcoin has contributed the highest capital inflows in the crypto market. The graph below reveals that the thirty-day net change of net inflows for Bitcoin was estimated to be around $4.47 billion and for Ethereum, it can be averaged at $3.5 billion. Contrary to these two cryptocurrencies, the value of the metric for stablecoins is negative.

Notably, while these cryptocurrencies have driven larger inflows, stablecoins have tried offsetting them by driving negative values. The thirty-day net change of net inflow for stablecoins has been estimated at -$1.2 billion, suggesting significant redemptions take place within the stablecoin sector.
Simultaneously, another set of data from Glassnode, particularly around aggregate stablecoin supplies for this year shows a significant decline. As per data, the net value of stablecoin supplies held on exchanges at the beginning of this year was around $134 billion. Over the months, the value has declined to come in at $124 billion, marking a decrease of over $10 billion as of June 5.
Talking individually of the performance of the major stablecoins over these months, we observe that BUSD and USDC have fueled this data while USDT tried offsetting their impact, recording a surge of $17 billion. On the other hand, USDC and BUSD have recorded declining values at $15.7 billion and $11.5 billion respectively.

The recent values also add to the previous figures which stated that Bitcoin and Ethereum inflow levels have surpassed that of stablecoins. Data suggested that recently in the case of Bitcoin, there had been a distinct break from the significant buy-side pressure seen in the first quarter of the year.
Notably, the recent change in investors’ sentiment toward Bitcoin is anticipated to be hailing from the regulatory crackdown in the United States. The Securities and Exchange Commission (SEC) has filed charges against two major crypto exchanges namely Coinbase and Binance.US within two days.
Further, as the SEC filed an emergency motion to freeze the assets of Binance.US, this expectedly induced panic among investors. It is also anticipated that the increasing regulatory pressure in the US has led to an 11% year-over-year decrease since June 2022, indicating a waning trust in Bitcoin’s resilience among American traders.
Simultaneously, the same movement has triggered traders to seek refuge in stablecoins, perceiving them as a safer alternative. Additionally, the threat of potential compliance-related penalties and clampdowns has incentivized a shift towards more conservative investments, even at the expense of potentially higher-yield opportunities.