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Ethereum Sees $16.4B Stablecoin Inflow — Monitor Deployment

I note that the on-chain supply of stablecoins on Ethereum increased by $16.4 billion over the past month.

I see this as a clear liquidity injection into the Ethereum ecosystem that can fuel DeFi activity, lending and trading — potentially supporting ETH and altcoin flows if those funds get deployed.

I will watch where the new stablecoins settle (DEX liquidity, lending protocols, or exchange balances) to judge whether this is a bullish liquidity tailwind or a prelude to selling pressure.

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Analysis

The $16.4B increase signals significant capital moving on-chain; if deployed into DEX liquidity or lending, it can amplify on-chain activity and provide buying pressure for ETH and alts. If it sits on...

Recommendation

Watch on-chain flows and exchange balances closely. Favor a monitoring stance and consider tactical exposure only if funds are being deployed into DeFi/DEX liquidity rather than accumulating on exchan...

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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