Recently, I’ve been looking at the two indicators: stablecoin supply and ETF net inflows. Many people, upon seeing them move in the same direction, start to imagine “off-market money is coming in, so the price is rising.”

My own review suggests it’s more like: sometimes the price rises first, and then people are willing to convert their funds into stablecoins; sometimes ETF is a bit slow to adjust, and the correlation is quite like a reflection on the road surface—just because it looks shiny doesn’t mean there’s actually water.

So, can it be used as a signal?
Yes, but only as a “sentiment thermometer,” not as a trigger to open positions.

By the way, the narrative around modularization and the DA layer—developers are talking excitedly about it—while I look at the data on the chain, I feel that users don’t really have much of a sense… Anyway, I still stick to my old method: review the trading volume and structure first, if it doesn’t look right, then forget it, and wait and see.