One thing that probably all of us here would agree on is that the stablecoins market in Crypto is very questionable. While it is something we need for DeFi and various other applications, we should also be aware that a large percentage of stablecoins are literally just like fiat (or maybe even worse). Multiple steblecoins has no real backing and are coming out of thin air and then used to artificially pump up prices of various Crypto. But now we have a very positive development in that sector, the Stablecoins supply on exchanges is taking a hit since the implosion of FTX and now various lawsuits on them, even by the SEC. Even their backers, like CZ for BUSD, have been moving out. Stablecoin Balance on exchanges by Glassnode To be exact, the stablecoins supply on exchanges has literally been halved, as it is -50% since 4 months ago. It dropped from a worth of $44B to now under $24B. Looking at the chart it is still in a free-fall that seems to be never ending. SSR metric showing Stablecoin supply being converted into BTC, by James V. Straten Apart from stablecoins printed out of thin air disappearing, this is also good as a large percentage of those stablecoins off exchanges has been directly put into Bitcoin. Which is also very bullish as we had the same trend in 2019 too, as you can see on the chart. Either way this as of now looks like a bullish trend but could obviously get a bit ugly if we really start to have a βshortageβ of stablecoins on exchanges it could be difficult for DeFi but I think that is just overexaggeration of this topic. [link] [comments] |
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