Non-USD stablecoins hit $2B ATH – Why altcoins still look weak

Any asset crash tends to ripple through the broader market quickly.

The recent Humanity Protocol [H] drawdown of over 85% on the 8th of June appears to have hit at an especially fragile point in the cycle.

On the macro side, large-cap assets are already hovering near multi-month lows, repeatedly testing key support levels and putting overall market conviction under significant stress.

Against this backdrop, the move in the H crypto token has only added pressure. Ethereum [ETH], for example,  has been down more than 40% this cycle, roughly 2x weaker relative to Bitcoin [BTC].

That divergence is increasingly notable, especially as it suggests that no strong, fundamentals-driven rally has yet materialized this quarter, despite earlier expectations of DeFi-led momentum following the 2025 bearish phase.

This breakdown is clearly visible in the chart above.

According to CoinGlass data, overall altcoin Open Interest (OI) has dropped back to mid-March levels, sitting around $115 billion. That’s a decline of over 25% from the early January peak near $150 billion.

In simple terms, speculative activity has cooled significantly across altcoins, a setup that doesn’t look particularly supportive in the current macro environment. 

Historically, during risk-off phases, speculation in altcoins tends to pick up as Bitcoin [BTC] runs into resistance and capital rotates into higher-beta assets.

However, this cycle, that playbook hasn’t really played out. Instead, H’s crash has added further pressure to an already fragile setup. Looking at liquidity flows, this could still be just the early stage of a deeper corrective or bearish phase.

Liquidity flows suggest caution, not confidence in altcoins

Normally, liquidity flowing back into the market is often seen as a bullish signal.

However, in the current macro FUD environment, with Bitcoin’s recent 25%+ correction, stronger liquidity inflows could actually lean bearish in the short term. Spot demand for BTC hasn’t fully recovered yet, and instead, risk-off sentiment appears to be driving investors toward hedging rather than deploying capital into risk assets, increasing the chance of a deeper correction in altcoins.

According to Arkham Intelligence, the circulating supply of non-USD stablecoins has reached an all-time high of $2 billion, up 43% in 2026 alone. EURC, BRZ, and A7A5 now account for the majority of the market.

Meanwhile, the total market cap of these stablecoins has also moved back up to around $316 billion after two weeks of steady outflows.

In essence, liquidity (both USD and non-USD) is gradually flowing back into the market.

However, following the recent Humanity Protocol crash, the altcoin market looks increasingly exposed to potential capital outflows. H’s 150%+ rally in late May had driven strong inflows into the ecosystem, but that momentum has now reversed. 

In this context, the pullback has clearly weakened sentiment and raised downside risk for altcoins.

Final Summary

• Altcoin markets are under pressure as falling open interest, ETH underperformance, and the Humanity Protocol crash point to weakening speculative momentum.
• Even as liquidity rises across USD and non-USD stablecoins, it appears to be sitting in a defensive posture rather than flowing into risk assets, keeping downside risk elevated for altcoins.