Executive Summary
PSI climbed 3.1 points to 88.7 while the Bank Run Gauge cratered to negative 41.8. The index says calm; the plumbing says otherwise.
PSI opened the week at 85.6, its lowest print in 25 days, and climbed steadily to 88.7 by Sunday, never once leaving STEADY band. That 3.1-point drift upward looks like healing on paper. The Bank Run Gauge, which swung from negative 12.2 to negative 41.8 over the same stretch, tells a different story entirely. This was a week where the headline index and the stress indicators spoke different languages, and the stress indicators were more fluent.
DOLA was the thread that stitched the week together. Monday's digest flagged DEWS adding its first WARNING-band coin; by Friday, DOLA itself had tripped that wire at a score of 58, bleeding $47M in a single day and dragging the gauge into STRESS territory. Saturday's headline, "The Gauge Drops, Nobody Flinches," captured the mood precisely: 3 coins printing max-negative pressure scores while PSI held 87.3 like nothing happened. DOLA's quiet bleed became a loud one in under 48 hours, and the 109 total depeg events across 7 days suggest it was not suffering alone.
The counter-narrative ran through gold and yields. PAXG and XAUT pulled capital at maximum pressure while USDC shed $1.44B over the week, a rotation that Wednesday's "USDC Sheds While Gold Fills" made explicit. By Sunday, USDC yields had spiked to 32.93%, the kind of number that either attracts fresh capital or signals desperation. GYD quietly became the sole WARNING on the board, and USR's grade collapsed to F, adding 2 more names to a growing list of coins where the letter grades are doing the talking PSI will not.
Total market cap barely moved, slipping $510M from $325.21B to $324.70B, a negative 0.16% change that masks violent redistribution underneath. The WATCH band swelled from 49 to 58 coins on Monday alone. Twenty-five grade transitions and 503 blacklist events across the week suggest the sorting mechanism is working overtime even as the top-line number yawns.
The structural concern is the gauge. A reading of negative 41.8 on Saturday, followed by PSI printing its highest close of the week at 88.7 on Sunday, is not resolution. It is divergence. When the stability index and the run gauge disagree this sharply for this long, one of them is wrong. History tends to side with the plumbing.