Midday Brief｜Stablecoin supply isn't expanding, but payments are growing?
CoinDesk reported at 03:16 this morning (Beijing time): Stablecoin supply growth has been sluggish this year, but payment usage has increased.
My take: supply and turnover are two different things—the same dollar can settle more transactions. So a payments boom doesn't mean new funds are buying crypto, let alone directly imply that BTC will rise.
The key indicators should be broken down into three parts: net issuance, genuine payment demand, and exchange fund flows. Only when all three move in the same direction is the case more convincing. Don't conflate industry adoption with short-term buying pressure.
Source: CoinDesk, November 8, “Stablecoin growth has stalled. The payments boom hasn't.” #稳定币 #CryptoMarket
CoinDesk reported at 03:16 this morning (Beijing time): Stablecoin supply growth has been sluggish this year, but payment usage has increased.
My take: supply and turnover are two different things—the same dollar can settle more transactions. So a payments boom doesn't mean new funds are buying crypto, let alone directly imply that BTC will rise.
The key indicators should be broken down into three parts: net issuance, genuine payment demand, and exchange fund flows. Only when all three move in the same direction is the case more convincing. Don't conflate industry adoption with short-term buying pressure.
Source: CoinDesk, November 8, “Stablecoin growth has stalled. The payments boom hasn't.” #稳定币 #CryptoMarket