The flow of liquidity in the DeFi market has taken a concerning turn recently. According to a Coinpedia report, DeXe, which had seen a significant uptrend, crashed by about 85% shortly after a large volume of funds flowed into exchanges. At the same time, capital outflows have been observed in major DeFi protocols like Curve and Uniswap, indicating that the internal circulation of capital within the ecosystem is accelerating.

What is noteworthy here is that Injective is also showing a pattern of exchange-bound fund inflows similar to that of DeXe. This suggests that profit-taking and position rebalancing are happening actively, centered around high-volatility assets.

While the shift of capital from traditional DeFi protocols to high-volatility assets is interesting, caution is warranted as it could lead to sharp corrections like the DeXe case. If you're tracking assets with similar on-chain signals, it would be wise to keep a close eye on volatility risks for the time being. haha

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