4 Comments
Aug 28, 2022Liked by JJ the Janitor

The catalyst is the fed. But that’s a boring one :). It may be hard to find just one event because crypto is so big. It may just be the next phase of everything we know simply maturing one more step. Better DeFi. Better insurance. Ethererum based L2 growth. Other L1s finding a competitive advantages. Regulations that toe the line but sufficient to provide big money to flow. I think the days of a single Elon tweet are becoming less

And less important.

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I'm surprised there aren't more comments after this excellent piece. It just seems to me that, once the uncertainty gets to a certain point re: UST, it will be a rush to get into BTC.

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I would think a lot of people not converting to fiat is because they are staking for ‘better’ yields in defi. They may not all be just sitting on the sidelines waiting for the right price of btc/eth etc but perhaps a good majority are. No idea I just know staking stablecoins is a big incentive to not convert to fiat where that wasn’t an option (or a cheap one) not too long again. Any response is appreciated!

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Yup a huge one! But what's so interesting to me is that this stablecoin dominance ratio has been *rising* even as yield farms like UST / Luna, Beanstalk, etc others have collapsed

There's not much yield to be generated staking stables as there was in 2020-2021 but they're still growing. It shows to me the general public's overton window in terms of crypto adoption has shifted drastically. Very few think of USDC as being all that different from fiat USD these days

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