Yahya 
As market volatility emerges, the cryptocurrency market is witnessing a directional shift in the flow of money from investing in cryptocurrencies to stabilizing them under stablecoins. What has been observed by CryptoQuant’s analyst is that stable coins are being bought up, which indicates capital rotation in the market.
Open interest, a measure of the total volume of unexecuted futures or options contracts, increased by 54 percent from May to July, indicating heightened speculation in beginner assets like Bitcoin and Ethereum. During this time, stablecoin market capitalization fell significantly by 80%, mainly due to a shift towards riskier assets, among other things.
However, between July and September, this trend reversed, with open interest falling by 25 percent and the total market capitalization of stablecoins rising by $4.7 billion. This makes it easier to surmise that traders are now shifting towards the stablecoins, something they do due to the prevailing market risks and fluctuations.
The transition to stablecoins is an indication of traders’ low levels of risk taking due to the market’s risky nature, which makes them quickly move into safer assets, especially until the market becomes less volatile.
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