The story of the not-so stable Stablecoin, On-Chain Outlook, Edition #40 (23/05/2022)
The fall of Terra continues to leave ripples in the wake of its collapse 👀 Read on to find out what to do when the market goes not up, not down but sideways 👇
It's been a more relaxed week in the crypto markets, with markets consolidating sideways.
For some, it's a good time to step away from the markets and ponder on the last few months.
And for digital assets like cryptocurrency, we're only just getting started 👇
Following the collapse of the Terra ecosystem and the complete loss of UST's depeg, USDT started to depeg.
Some exchanges even reported the stablecoin trading as low as 90 cents before being stabilised.
However, after the initial depeg, there seems to be some movement of capital from USDT to USDC.
See below - the pink depicts the decreasing market cap of USDT whilst USDC (orange) grows.
For today's short update, let's revisit our on-chain metrics.
In our last on-chain update, we saw the initial spike of BTC supply moved onto exchanges due to the UST situation where BTC was 'sold' to defend the peg.
In a reversal of this trend, exchange supply has now been absorbed with supply on exchanges dipping. Let's continue to monitor in the next few weeks with hungry eyes.
The story differs for Ethereum, with supply on exchanges increasing since the collapse of the Terra ecosystem.
Sideways markets can be many things;
But they also present us with opportunities unseen at first glance - take time out, reflect on the last few months without bias & pinpoint what lessons you must take going forward.
If there are projects you hold a long term horizon on, this is the time to perfect a game plan on how to accumulate for the next cycle.
No one wants to be caught with their pants down.
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See you again for the next update.
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