Whales Avoiding Fiat-Collateral Stables Lately. Why?

Noticed similar patterns on-chain large wallets unwinding from USDC/USDT into LUSD, DAI (post-ETH backing boost), and even sDAI. ETH-native collateral clearly regaining appeal, especially with censorship and freeze risk now a legit consideration. Regulatory pressure might be the catalyst, but the underlying trend feels like a broader reassessment of trust layers. Haven’t seen a fiat-backed stable bucking the trend yet. Curious to see how protocols like Ethena evolve if this continues.
 
Harry said:
Fiat-backed stables feel less like assets, more like liabilities waiting to be blacklisted.
Whales aren’t stupid—they’ve seen what happens when compliance trumps custody.
USDC and friends look stable until regulators yank the rug.
Crypto-collateral might be volatile, but at least it’s censorship-resistant.
The trend says it all: better to ride the storm than get frozen mid-transfer.
That “unicorn” stable? If it exists, it’s probably not on a U.S. server.
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Exactly—fiat-backed stables are only stable until the blacklist hammer drops. Crypto-collateralized options may swing harder, but at least they can’t be frozen at the flip of a switch.
 
Silent Symphony said:
Tracking USDC, USDT, and even newer fiat-collateral stables—and I’m noticing a shift: whale wallets are reducing exposure and rotating into either crypto-collateral stables or plain ETH.


Might be regulatory FUD. Might be pre-emptive de-risking ahead of a liquidity squeeze.


But the flow is clear: less trust in fiat backing, more interest in what can’t be frozen.


Anyone else tracking this trend? Or know of a stable that’s fiat-collateralized but has been seeing increasing whale inflow? (if that unicorn exists)


Would love more datapoints before I rotate.
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Fiat stables are starting to feel like ticking time bombs—whales aren’t rotating for fun, they’re running for cover.
 
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