On-chain data from the past week reveals a significant divergence in investor capital flows within the cryptocurrency market. While some networks saw substantial net inflows, major ecosystems experienced notable outflows, indicating a selective reallocation of liquidity towards specific projects.
The highest net inflows were concentrated in Layer-2 and alternative blockchain ecosystems. Leading the pack was Polygon PoS with an inflow of $117.33 million, followed closely by Hyperliquid at $112.11 million. Other notable gainers included Base ($23.70 million), Ink ($15.62 million), Injective ($8.62 million), BNB Chain ($2.57 million), and Sui ($106,000).
Conversely, several prominent networks faced significant outflows. Arbitrum led the outflows with -$115.49 million, followed by Ethereum (ETH) at -$62.72 million, OP Mainnet at -$36.31 million, Solana (SOL) at -$34.26 million, and Sei Network at -$14.51 million. Other networks like Berachain, Avalanche C-Chain, Starknet, Unichain, and WorldChain also recorded smaller outflows.
This capital movement occurs against a broader market backdrop where the TOTAL3 index—the market cap excluding Bitcoin and Ethereum—has declined approximately 40% from its October 2025 peak of ~$1.2 trillion to $710.72 billion. The CoinMarketCap Altcoin Season Index sits at 35 out of 100, meaning Bitcoin has outperformed 65% of the top 100 altcoins over the past 90 days, with the index trending downward from 38 just last week.
Analysis of stablecoin flows provides a nuanced signal. While a significant $2.5 billion inflow spike occurred in mid-March, netflows have since stabilized to a modest but consistent positive territory, currently at 69.8 million. This pattern suggests liquidity accumulation rather than active deployment. Historically, stablecoin rotation moves into Bitcoin first, then Ethereum, and finally altcoins. The current low Altcoin Season Index suggests capital is likely still in the BTC phase of this rotation, not yet signaling a broad altcoin season. The market exhibits compression and sits on a key support level without the volume capitulation typically associated with a definitive bottom.
