A recent decline in the stablecoin market capitalization is raising concerns about short-term recovery prospects for the broader crypto market. Over the past 10 days, the combined market value of the top stablecoins has dropped by $2.24 billion, suggesting that capital is exiting the crypto ecosystem rather than waiting on the sidelines.
Market data indicates that investors are reallocating funds into traditional safe-haven assets. During the same period, gold and silver prices surged to new historical highs, reflecting a clear preference for stability amid global economic uncertainty.
In a post to X on Monday, Santiment said;
Bitcoin Underperforms as Precious Metals Rally
Bitcoin, often viewed as a digital store of value, has struggled to keep pace. After a sharp market correction in October—when more than $19 billion in leveraged positions were wiped out—Bitcoin fell nearly 30%, sliding from around $121,500 to near $88,000. In contrast, gold has gained over 20%, breaking above the $5,000 level, while silver has more than doubled in value over recent months.
Stablecoin Supply Seen as Key Recovery Indicator
Stablecoin growth is historically a leading signal of crypto market rebounds. Rising stablecoin supply often reflects fresh capital entering the ecosystem and renewed investor confidence. Until that trend reverses, smaller digital assets are expected to remain under pressure.
While Bitcoin has shown relative resilience compared to altcoins, a shrinking stablecoin base continues to limit upside across the entire crypto market, reinforcing the current tilt toward lower-risk assets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.