A $2.24 billion drop in total stablecoin market capitalization over the last 10 days could signal capital is leaving the crypto ecosystem and may delay market recovery, according to a crypto analytics platform.
In a post to X on Monday, Santiment said that much of that capital has rotated into traditional safe havens like gold and silver, pushing them to new highs, while Bitcoin (BTC), the broader crypto market and stablecoins have retraced.
“A falling stablecoin market cap shows that many investors are cashing out to fiat instead of preparing to buy dips,” Santiment said, adding that rising demand for gold and silver suggests that “investors are choosing safety over risk.”
“When uncertainty rises, money often flows into assets that are seen as stores of value during economic stress, rather than volatile markets like crypto.”
Gold, silver outpacing Bitcoin in recent months
Bitcoin was performing strongly in 2025 until Oct. 10, when over $19 billion worth of leveraged crypto positions were flushed from the ecosystem, and Bitcoin fell from about $121,500 to below $103,000 in a single day.
Since then, Bitcoin has fallen to $88,080, while gold has soared more than 20% to break the $5,000 barrier, and silver has more than doubled in market value.
Stablecoin issuer Tether has been one of the biggest buyers of gold in recent months, purchasing 27 metric tons worth $4.4 billion in the fourth quarter of 2025 alone.
Related: Gold’s digital rally mirrors increasing stress on US dollar
Rising stablecoin supply could signal market rebound
Santiment said crypto market recovery may need stablecoin growth first:
“Historically, strong crypto recoveries tend to start when stablecoin market caps stop falling and begin to rise again. That would signal fresh capital entering the ecosystem and renewed confidence from investors.”
Until that stablecoin growth comes, smaller, riskier crypto assets — altcoins — will continue to be hit much harder than Bitcoin.
“Bitcoin often holds up better than altcoins in these environments, but reduced stablecoin supply still limits upside across the market,” Santiment added.
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