The purchasing power of stablecoins remains high, but the market’s willingness to buy BTC has decreased recently

特邀专栏作者

2021-03-23 14:02 (UTC+8)

This article is about 653 words, reading the full article takes about 1 minutes

With the rise of DeFi, exchanges are no longer the only "reservoir" for stablecoins, and more and more stablecoins have been injected into DeFi as liquidity.

AI Summary

Expand

With the rise of DeFi, exchanges are no longer the only "reservoir" for stablecoins, and more and more stablecoins have been injected into DeFi as liquidity.

According to news on March 23, a number of data show that the current purchasing power of stablecoins against BTC is at a relatively high level in recent years, but the market's willingness to buy has not increased simultaneously. If the ratio between the supply of bitcoin and the supply of stablecoins is regarded as the purchasing power of stablecoins, the lower the ratio, the stronger the ability of stablecoins to buy bitcoin. According to the statistics of glassnode, the current stablecoin purchase rate (SSR) is about 18.66%, which is at a relatively low level in the near future, that is, the purchasing power is at a relatively high level.

In fact, since the sharp drop of Bitcoin in mid-March last year, the SSR index has always been lower than 25%. This is related to the marginal decrease in supply after the reduction of Bitcoin production on the one hand, and on the other hand to the continuous issuance of stablecoins. According to DApp Total's monitoring of the stablecoin market, the current total market value of stablecoins is about 59.68 billion US dollars, which is nearly 10 times higher than the 6.15 billion US dollars on March 12, 2020.

However, although the SSR index shows that stablecoins have relatively high purchasing power in the near future, affected by the recent high and wide fluctuations of Bitcoin, the market's willingness to buy is not strong. According to the monitoring of Chainalysis, the recent Bitcoin transaction intensity has shown a slight downward trend. The average transaction intensity on March 21 was about 7.08, a slight decrease of 9.5% from the same period last month. At the same time, the average transaction intensity in the last 7 days is about 6.795, which is lower than the average level since this year.

It can be seen that with the rise of DeFi, exchanges are no longer the only "reservoir" for stablecoins, and more and more stablecoins are injected into DeFi as liquidity. According to the monitoring of Etherscan, in terms of the balance distribution of ERC20-USDT, the stable currency with the largest market value, the holdings of multiple DeFi protocols have shown a significant increase recently, such as Curve.fi as shown in the following figure: DAI/ USDC/USDT Pool, SushiSwap: USDT, Compound Tether, etc.