#stablecoin#USDT#USDC #BUSD

Data meaning:

1. Histogram value <0: represents that the MACD line is less than the signal line, indicating a long-term bearish trend

2. Histogram value > 0: It means that the MACD line is greater than the signal line, which is a long-term positive trend.

3. Dark color of histogram: represents month-on-month acceleration, red represents short-term bearish trend

4. Light color of histogram: represents month-on-month deceleration, pink represents short-term positive trend

Last week's data:

Figure 1: USDT supply histogram, long-term bearish + short-term bullish trend

Figure 2 below: BUSD supply histogram, long-term bearish + short-term bullish trend

Figure 3 below: The total supply histogram of USDT+BUSD can represent the momentum of the main trading funds in the market. The sum of the two can also avoid the influence of the rise and fall of a single stablecoin on the judgment of the trend. This chart is currently in a long-term negative + short-term positive trend

Mcap/TVL

Mcap/TVL is the ratio of the total market value of stablecoins to TVL, which reflects the utilization rate of funds of stablecoins on the chain.

The higher the utilization rate, the smaller the Mcap/TVL ratio, which means that the market sentiment tends to be optimistic.

The lower the utilization rate, the larger the Mcap/TVL ratio, which means that market sentiment tends to be pessimistic.

Mcap/TVL current value (January 23): 1.93, tends to be pessimistic, week-on-week growth rate: -10%

From the supply histogram last week, USDT has a relatively obvious upward trend, and BUSD's momentum is also slowly rising. However, the absolute value of the overall supply has not increased (the total supply of USDT+BUSD was 82.8 billion on January 1, and it is still 82.8 billion now), so the current wave of increases can be judged to be driven by funds on the exchange, rather than new funds flowing into the exchange.

It is even more obvious from the utilization rate of funds on the chain. While Mcap has not increased, TVL has increased significantly (an increase of 3.3 billion, which is positive), making the value of Mcap/TVL exceed 2. It can be seen that market sentiment is coming out of extreme pessimism. However, due to the lack of new external capital inflows, there is no sign of a bear market reversal.