📉 Stablecoin growth stalls, but payments are booming
Stablecoin supply has remained virtually flat this year. Yet payments made using these tokens have surged.
Circle’s latest earnings report is another example of this divergence: the amount of stablecoin dollars in circulation and actual activity on blockchain networks are no longer moving in tandem.
In other words, the market is no longer looking only at “how many more stablecoins are being minted.” The same stablecoins can be used repeatedly, so a flat supply does not mean demand for their use is weakening.
For traders, this is a signal to consider on-chain activity metrics as well, rather than relying solely on stablecoin market capitalization to assess money flowing into the market. (Not investment advice)
Which do you think is a better measure of market health: stablecoin supply or payment volume?
#Stablecoin #Crypto #Binance #CryptoNews
Source: CoinDesk
#hoangducinvest
Stablecoin supply has remained virtually flat this year. Yet payments made using these tokens have surged.
Circle’s latest earnings report is another example of this divergence: the amount of stablecoin dollars in circulation and actual activity on blockchain networks are no longer moving in tandem.
In other words, the market is no longer looking only at “how many more stablecoins are being minted.” The same stablecoins can be used repeatedly, so a flat supply does not mean demand for their use is weakening.
For traders, this is a signal to consider on-chain activity metrics as well, rather than relying solely on stablecoin market capitalization to assess money flowing into the market. (Not investment advice)
Which do you think is a better measure of market health: stablecoin supply or payment volume?
#Stablecoin #Crypto #Binance #CryptoNews
Source: CoinDesk
#hoangducinvest