Research on the correlation between inflation data and HUMA's price

#HumaFinance ($HUMA ) is a protocol focused on RWA (Real World Assets) and cross-border payments within the Solana ecosystem. The correlation between its token price and inflation data is primarily reflected in the following three aspects:

1. Hedge demand driven by inflation expectations

When U.S. CPI data exceeds expectations (such as a year-on-year increase of 2.7% in June 2025), market concerns about inflation may drive funds towards anti-inflation assets. HUMA provides an annualized fixed income of 10% through on-chain stablecoins (such as USDC), and some investors may view it as a hedging tool, thus increasing token demand. For example, for every 1% increase in Indian household inflation expectations, net cryptocurrency purchases increase by 1000 units; similar logic may apply to HUMA's income-generating products.

2. Transmission effect of Federal Reserve policy expectations

If an increase in CPI triggers expectations of interest rate hikes (such as a sudden drop in the market's probability of rate cuts in June 2025), a high interest rate environment may suppress the performance of risk assets, putting pressure on HUMA's price. Conversely, if inflation is moderate and the Federal Reserve releases dovish signals (such as a potential rate cut in November 2025), a low interest rate environment may enhance HUMA's income attractiveness.

3. Substitute relationship between on-chain yields and inflation @Huma Finance 🟣

The fee income generated from HUMA's core business (such as cross-border payment financing) is more competitive during periods of high inflation, especially when traditional financial yields (such as government bonds) decline in attractiveness due to negative real interest rates. However, if inflation is accompanied by economic recession (such as tariffs pushing core commodity prices to 3.3%), the risk of corporate bad debts may weaken the quality of HUMA's underlying assets, negatively impacting token value.

Conclusion: HUMA's price has a nonlinear relationship with inflation data, requiring a comprehensive assessment in conjunction with policy expectations, real yields, and macroeconomic risks. Short-term fluctuations are driven by CPI announcement events, while long-term stability relies on the stability of protocol yields.