When a crash occurs, the capital outflow you see is just a surface phenomenon.

**Whales are "rebalancing," not fleeing**

On days when the market declines, an interesting phenomenon emerges — the trading volume of stablecoins surges against the trend. This may seem strange, but it actually reveals the true operations of institutions.

Take the flash crash in early August as an example. About $1.3 billion worth of USDT alone flowed into exchanges, with inflows to exchanges skyrocketing by 181% within a week. This isn't capital fleeing the crypto market, but large funds quickly adjusting their positions.

Why choose stablecoins instead of withdrawing directly? The reason is simple. To convert to USD, one must go through the banking system, which takes 1 to 3 days and may encounter review delays; but stablecoins are different — almost instant transfers, with negligible fees. To put it simply, it's like pulling back troops to a safe stronghold during a war, then re-engaging once the situation stabilizes. The truly panicked are retail investors; institutions are just crouching down to tie their shoelaces.

**Stablecoins have become the market's stabilizing anchor**

In the past, during market crashes, capital would either desperately switch to USD or completely exit. Now, the logic has changed — stablecoins have become a safe-haven asset in the crypto world. Especially compliant varieties like USDC, which are favored by large funds — backed by reserves consisting of cash and short-term government bonds, and subject to monthly third-party audits, ensuring transparency.

Just look at the scale. The total market cap of stablecoins has already surpassed $310 billion, with daily settlement volumes approaching three times that of Visa. Their role has long gone beyond simple trading media; they underpin DeFi lending, RWA (real-world asset tokenization), and other ecosystems. In plain terms, stablecoins are the digital dollar of the crypto world — the more they drop, the more their fundamental role becomes apparent.

**What are the reasons behind the over $300 billion stablecoin reserves?**

The current stablecoin reserves of over $300 billion are essentially "dipping points" for large funds. They won't stay long in exchange accounts; behind them are continuous buy signals. Every market dip activates these reserves, turning them into strategic opportunities. That’s why stablecoins shine even when other assets plummet.