• 16 July, 2024

Blockchain Analyst Provides Insight on Stablecoins’ High Degree of Correlation

The blockchain research platform Nansen shared the latest insights on the stablecoins, highlighting that some stablecoins including USDC, FRAX, and DAI have a “high degree of correlation”. According to the research analyst Beili Baraki, the asset-backed stablecoin Tether (USDT) has been gaining traction; he found that the Smart Wallets have been significantly exhibiting interest in acquiring USDT holdings.

On May 6, Nansen released a chain of Twitter threads, inviting the community’s attention towards various topics including the current state of stablecoins, scrutiny over top NFT traders, an overview of the decentralized social networks, etc.:

While Beili analyzed the condition of stablecoins after the USDC de-peg event, he identified strong positive correlations between FRAX, DAI, and USDC, indicating “limited diversification benefits”. He added that a truly decentralized stablecoin is mandatory as the market remains vulnerable to external factors.

Significantly, the platform also provided a detailed sketch of popular NFT traders and their NFT holdings, as analyzed by the researcher Frank Fu. Fu’s research revealed that the most demanded NFTs included Otherdeed Expanded, Otherside Vessels, Otherside Koda, Otherdeed for Otherside, CaptainZ, HV-MTL, and Nakamigos.

While revealing the address which made 168 trades on April 26, Nansen narrated the key tool used for tracking the NFT market trends. The platform cited:

The NFT Wallet Leaderboard is a useful tool for tracking top-performing wallets and identifying market trends, but it should be used alongside other metrics for a comprehensive understanding of the NFT market.

Further, Nansen pictured the massive growth of the decentralized social networking platforms that gained wide popularity over the past months. The analyst Xin Yi Lim recognized through research that the networks including Farcaster, CyberConnect, and Lens Protocol have been successful in attracting more users.

Finally, Nansen offered predictions on the Federal Reserve’s interest rates, as pointed out by the researcher Aurelie Barthere. She predicted that the US might stop interest hikes by September, resulting from the “resilience of US growth and inflation”.

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