Home CryptoBitcoin Stablecoin Growth Should Continue Strong

Stablecoin Growth Should Continue Strong

by Paul Ebeling

#stablecoins #investors #bitcoin #ether #DeFi #blockchain #growth

$BTCUSD $ETHUSD $KNIGHTSUSD

Interest in the cryptocurrency markets has roared back, with bitcoin and ether both breaking their previous all-time highs. However just after the breakout things turned South, and the overall market, sans KNIGHTS, took nearly a 25% dip on a Fibo retracement” –– Paul Ebeling

While many investors and traders were calling for an end to this Bull market, the stablecoin printer continued to pump new capital into every corner of crypto. Several billion-dollar funds were announced and institutional investors were taking part, arguably for the 1st time in the short history of the asset class.

The growth of stablecoin supply is correlated to DeFi (decentralized finance) (TVL) total value locked for 2 reasons:

  1. New capital is adding buy pressure to crypto assets, boosting the dollar measure of TVL;
  2. New capital is looking to be deployed throughout DeFi to earn yield on trading fees, lending yield and on-chain derivatives.

Since the beginning of Y 2020, stablecoin supply has been almost “up only,” hinting that users may sell into stablecoins, but they are not leaving the sector.

Regardless of short-term price action, the adoption of stablecoins and DeFi applications by funds, institutions and individuals is a positive for the industry.

Innovation on Top of Ethereum will continue to connect DeFi with the outside world, and stablecoin growth should continue to be a strong measure of adoption.

Have a prosperous day, Keep the Faith!

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.