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On-Chain Insights: LUSD, USDC Redemptions, LQTY and Blur Outflows
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Key Takeaways
3 min read
  • Smart Money stablecoin holding ratio relative to all holdings has declined sharply over the past week, which could indicate rotation to ETH and withdrawals into fiat currencies.
  • Similar to interest in DAI and FRAX yesterday, LUSD has seen a notable increase today in Smart Money holdings.
  • USDC is still declining in supply as redemptions outweigh mints, but on-chain data suggests that the fear may have somewhat subsided as netflow volumes slow down.
  • Smart Money has been rotating out of LQTY and BLUR due to its recent price appreciation.

Stablecoins

  • The Smart Money stablecoin holding ratio has declined significantly and is currently at 16% relative to all holdings.
  • This could partially be due to some withdrawals into fiat currencies, as well as capital deployment into ETH and altcoins before the crypto markets rallied yesterday following the CPI print.

LUSD

  • While DAI and FRAX saw an uptick in Smart Money holdings yesterday, LUSD saw a net inflow of $1.27m into Smart Money holders over the past 24H.
  • LUSD and other decentralized stablecoin alternatives have recently seen elevated interest.
  • Subsequently, the balance of LUSD on DEXes has dropped approximately 4% since last week and is now sitting at all-time lows in terms of available supply...