Today, Xiao Xiong will share a secret, which can observe the bull-bear cycle, help you build positions in the bear market, and escape from the top of the bull market, so that you can print money happily during the Bitcoin halving cycle💎
First, let me ask a question, "Who are the top three cryptocurrencies by market capitalization?"
Top 1 Bitcoin 879.8 billion US dollars
Top 2 Ethereum 286.1 billion US dollars
The third place is Solana 47.8 billion or BNB 48.9 billion? Guess?
I tell you, neither
Top 3 Stablecoin USDT 91.9 billion USD
USDT and USDC together account for more than 70% of the stablecoin market share. Observing the changes in their quantity will keep you one step ahead of the crowd!
🔧Blockchain will reward hardworking people, I am only throwing out some tips for the cycle secrets:
1. Rising stablecoin issuance may signal a bullish market
2. The decline in stablecoin issuance may indicate that the market is entering a bearish cycle
⚒Chart observation indicators
USDT Supply
https://cn.tradingview.com/symbols/USDT_SUPPLY/
USDC Supply
https://cn.tradingview.com/symbols/USDC_SUPPLY/
🌠Basic Logic
You observe that USDT has issued another 1 billion U.S. dollars. Because Tether has promised a 1:1 margin exchange, it may mean that 1 billion U.S. dollars of traditional legal currency has flowed into the cryptocurrency market, and the prices of assets in the market will rise.
But this is just one of the decision-making indicators and is not recommended to be used alone.
⚓ Knowledge expansion
Tether Stablecoin USD 91.9 billion
- Founded in 2014
- Headquartered in the British Virgin Islands
- The main business is to issue stable currency USDT
- Official website: https://tether.to/en/
Circle Stablecoin USD 24.7 billion
- Founded in 2013
- Headquartered in Boston, USA
- Main businesses include payment applications and crypto asset investment
- Official website: https://www.circle.com/
Tether's financial data is very mysterious. There are rumors that Tether has only a hundred employees. Crypto asset research company Arkham Intelligence estimates that Tether has earned about $20 billion in revenue from its stablecoin business in 2021 alone.
What is the concept of 20 billion US dollars? Let me compare it with you brothers
⭐ Company Name 2021 Revenue Number of Employees
- PepsiCo $38.3 billion 79,000 employees
- MasterCard $18.5 billion 24,000 people
- Visa $13.5 billion 21,500 employees
- Starbucks $29.4 billion 383,000 employees
- Adidas $23.5 billion 60,000 employees
- TEDA 20 billion USD 100 people 200 million USD per person profit
Isn't it scary? I heard that TEDA did nothing but used 91.9 billion US dollars to buy US Treasury bonds, with an annual interest rate of 5.5%, which means an income of 4.6 billion US dollars a year. Evil capital...😭
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Let’s take a closer look at what stablecoins are #LearnwithCIAN
1 Introduction
Stablecoins are cryptocurrencies designed to maintain a stable value, in contrast to the high volatility of cryptocurrencies such as Bitcoin and Ethereum. This stability is achieved by being backed by a reserve or basket of assets.
- Volatility Solutions: Cryptocurrencies are notorious for their price volatility. Stablecoins provide a key solution to the crypto ecosystem by ensuring price stability, which helps in smooth transactions.
- Bridge function: Stablecoins bridge the gap between traditional finance (TradFi) and the crypto world by providing users with familiar and stable value
2. Stablecoin Types
- Centralized Fiat-Backed Stablecoins: These stablecoins are backed by fiat currency reserves, such as the U.S. dollar. For every stablecoin issued, there is an equivalent amount of fiat currency reserves. Examples include USDC and Tether (USDT)
- Collateralized Debt Position (CDP) Stablecoins: These stablecoins are backed by other cryptocurrencies such as Ethereum. They are over-collateralized due to the volatility of the backing cryptocurrencies. Examples include DAl, LUSD, and GHO
- Algorithmic Stablecoins: These stablecoins are not backed by any collateral. Instead, they rely on algorithms and smart contracts to automatically adjust the supply of the stablecoin to maintain its value. Notable examples are Ampleforth (AMPL)
This knowledge point is provided by @CIAN_protocol Defi Class
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I hope that learning from this article will help you with your money-making skills in the cryptocurrency world.
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