In a still challenging market environment, Bitcoin continues its correction and has recently exceeded a 50% drawdown, marking the deepest pullback observed since the start of this cycle.
Despite this sharp decline, stablecoin netflow data shows continued investor engagement during this phase.
On a monthly average basis, across all exchanges, ERC 20 stablecoin netflows moved from -$87.9 million on December 1 to around -$134.3 million today. In other words, net stablecoin outflows from exchanges have intensified, signaling a form of broad de-risking.
This pattern is not uniform across exchanges. CeFi platforms like Nexo are showing the opposite trend, potentially indicating more selective capital deployment.
On December 1, average monthly stablecoin outflows stood at about -$5.8 million as Bitcoin’s correction was accelerating. As the downturn continued, flows reversed, and stablecoin netflows on Nexo turned positive, now reaching roughly $1.8 million.
Part of these inflows likely went toward spot exposure, but not exclusively. On Nexo, stablecoins also enable investors to deploy yield-generating strategies and diversify their positions despite a difficult market phase.
Stablecoins now account for a larger share of borrowing collateral on Nexo, rising from 1.8% to 3.3% since July 2025.
This shift reflects their growing use as collateral in yield strategies.
Written by Darkfost
