PANews reported on January 27th, citing Cointelegraph, that crypto analytics platform Santiment pointed out that the total market capitalization of stablecoins decreased by $2.24 billion in the past 10 days, potentially indicating an outflow of funds from the crypto ecosystem and slowing market recovery. The agency's analysis suggests that these funds appear to have shifted to traditional safe-haven assets such as gold and silver, driving their prices to new highs, while Bitcoin, the overall crypto market, and stablecoin market capitalization have seen a correction.

Santiment stated that the decline in stablecoin market capitalization reflects investors converting to fiat currency rather than preparing to buy on dips, while increased demand for precious metals indicates a market preference for safe-haven assets. Historical data shows that strong recovery in the crypto market often begins with a rebound in stablecoin market capitalization, signifying new capital inflows and restored confidence. Prior to this, altcoins and other risky assets may continue to face pressure. While Bitcoin has been relatively resilient, the shrinking supply of stablecoins will still limit overall upside potential.