#stablecoin #stablecoin

The supply of stablecoin USDT last week:

Judging from the supply histogram, USDT supply stabilized after experiencing rapid growth last week. The current USDT supply situation is in a trend of long-term positive + short-term positive.

Note data meaning:

1. Histogram value <0: It means that the MACD line is smaller than the signal line, indicating a long-term negative trend.

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

3. Dark color of the histogram: represents month-on-month acceleration, dark green short-term positive trend, dark red short-term negative trend

4. Light color of the histogram: represents month-on-month deceleration, light green short-term negative trend, light red short-term positive trend

Mcap/TVL

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

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

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

Current value of Mcap/TVL (March 20): 1.76, pessimistic sentiment (close to neutral), week-on-week increase: -7.85%

In terms of on-chain capital utilization, last week Mcap decreased by 1.9 billion month-on-month (USDT supply increased, but the overall decrease was mainly due to the rapid decline in USDC supply). At the same time, TVL increased by 5 billion month-on-month, which means that the capital sentiment on the chain has greatly improved and the capital utilization rate has greatly improved.

In addition, I have counted the historical data of Mcap/TVL since DefiLIama has relevant data (March 31, 2021), and the value range of Mcap/TVL is roughly between 0.6 and 2.45. According to this data range, if this fund sentiment indicator is divided into five levels: extremely optimistic, optimistic, neutral, pessimistic, and extremely pessimistic, the range is roughly as follows:

With reference to this sentiment indicator range, investing will become very simple. You only need to place investments in the extremely pessimistic range and sell in the extremely optimistic range. If you stand on the opposite side of market sentiment, you will not make any big mistakes.