#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: BUSD supply histogram, long-term bearish + short-term neutral 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 bearish + short-term neutral 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 16): 2.03, tends to be pessimistic, week-on-week increase: -11.35%

From the supply histogram, USDT supply has increased slightly, while BUSD supply is still in a bottom oscillation state. Overall, the main funds are still in a neutral trend. It can be seen that the recent market rise is not caused by the influx of new external funds, but by the purchase of existing funds.

This can also be clearly verified from the utilization rate of funds on the chain. The total market value of stablecoins changed little last week, while TVL increased by 7.76 billion, a month-on-month increase of 12.9%. Therefore, Mcap/TVL decreased by 11.35% month-on-month (good news). However, it should be noted that the current Mcap/TVL is still at a high level of >2. Without the influx of external funds, it is difficult to draw the conclusion that the bear market has turned into a bull market.