Stablecoin Net Flow

Definition ∞ Stablecoin net flow measures the aggregate movement of stablecoins into or out of centralized cryptocurrency exchanges. A positive net flow indicates that more stablecoins are being deposited onto exchanges than withdrawn, suggesting potential buying power waiting to enter other digital asset markets. Conversely, a negative net flow implies stablecoins are being moved off exchanges, possibly for long-term holding or use in decentralized finance.
Context ∞ Stablecoin net flow is a crucial on-chain metric often cited in crypto news to gauge market liquidity and potential future price action. Significant inflows can precede upward price movements for Bitcoin and altcoins, as these stablecoins represent available capital. This metric provides a valuable leading indicator for market sentiment.