Stablecoin Inflows Jump as US Lawmakers Clash on Yield

TLDR

• Stablecoin inflows rose to $1.7 billion last week, marking a sharp weekly increase.
• Messari reported a 414.5% jump in weekly net stablecoin inflows compared with the previous week.
• The 30-day average turned positive as daily inflows reached $162.5 million.
• Blockchain transaction volumes increased by 6.3% during the same period.
• Average transaction size declined, indicating higher participation from retail users.

Stablecoin activity accelerated last week as fresh capital entered dollar-pegged tokens and lawmakers debated new yield restrictions. Messari reported a sharp rise in weekly net inflows while blockchain transactions also increased. However, disputes over yield-bearing stablecoins stalled progress on a key crypto bill in Washington.

Stablecoin Inflows Surge as Capital Returns

Messari reported that weekly net stablecoin inflows reached $1.7 billion, reflecting a 414.5% increase from the prior week. The data showed a clear rebound after earlier outflows reduced circulating supply across major networks.

Stablecoin inflows measure the net tokens issued after redemptions, and they reflect new capital entering crypto markets. Over the past 30 days, average daily inflows reached $162.5 million, which pushed the 30-day average back into positive territory.

Two weeks before the rebound, Messari recorded weekly inflows of $249 million, which marked a slower pace of issuance. In the 30 days leading to Feb. 18, the market recorded $4.4 billion in net stablecoin outflows, which weighed on activity.

Blockchain networks processed higher volumes as transaction activity increased during the same period. Weekly transaction volumes rose 6.3%, which indicated stronger usage across stablecoin networks.

Messari stated that the average transaction size declined during the week, which suggested broader retail participation. The firm wrote that smaller transfers pointed to increased activity from individual users rather than institutions.

The report linked the rise in network usage directly to the rebound in stablecoin issuance. It stated that higher onchain movement aligned with the return of net inflows into circulation.

Yield Debate Stalls Senate Crypto Bill

Lawmakers intensified discussions over whether stablecoin issuers should offer yield to token holders. Banking groups argued that yield-bearing tokens could draw deposits away from traditional banks.

Industry representatives urged lawmakers to restrict yield payments as they negotiated a broader crypto market structure bill. They said clear limits would prevent regulatory gaps and protect existing financial institutions.

The Senate Banking Committee had scheduled a markup session for the bill in mid-January. However, disputes over yield provisions forced lawmakers to postpone the session indefinitely, according to committee updates.

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