As pointed out by an analyst in a CryptoQuant post, the latest stablecoin deposits are the highest observed this year so far. The relevant indicator here is the “stablecoin exchange netflow,” which measures the net amount of stablecoins that are moving into or out of the wallets of all centralized exchanges. The metric’s value is simply calculated by taking the difference between the inflows and outflows.

When the value of this metric is greater than zero, it means the inflows taking place are currently higher than the outflows, and thus a net number of tokens is being deposited into these platforms. On the other hand, negative values imply investors are making withdrawals right now.

As stablecoins are tied to fiat currencies, their values are generally stable (hence the name). Thus, investors swap into these tokens whenever they want to escape the volatility associated with coins like Bitcoin.