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Ethereum Stablecoin Supply Up $16.4B — Liquidity Boost May Fuel Risk Assets
I note that the supply of stablecoins on Ethereum rose by $16.4 billion over the past month.
I view this as a meaningful increase in on-chain liquidity that can support DeFi activity and create fuel for risk-on moves, though the effect depends on whether those stablecoins are parked, deployed in protocols, or moved to exchanges.
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Analysis
A $16.4B increase materially raises available on-chain liquidity, likely lowering borrowing costs and enabling larger capital flows into DeFi and spot/derivative markets; the net market impact hinges ...
Recommendation
Watch the destination of these stablecoins (DeFi protocols, exchange balances, or OTC flows). Consider cautious, tactical exposure if evidence shows stablecoins being absorbed into risk assets; otherw...
Disclaimer
The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.
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