The State of Stablecoins, Analyzing Top NFT Traders, Decentralized Social Networks and more | Weekly Research Roundup (May 1 - 5)

The State of Stablecoins, Analyzing Top NFT Traders, Decentralized Social Networks and more | Weekly Research Roundup (May 1 - 5)

State of stablecoins post USDC de-peg, analyzing top NFT traders, overviews of decentralized social networks, and macro updates, all in this week's roundup.

Table of Contents

Text Link

Gm Nansen Explorers,

Welcome to this week's edition of Nansen's Weekly Research Roundup, where we bring you the latest research reports from our team. Lets dive in!

1. In Search of On-Chain Stability: An Update Since the De-peg

How are stablecoins doing after the USDC de-peg? Beili analysis of the USDC de-peg event shows strong positive correlations between DAI, USDC, and FRAX, implying limited diversification benefits. Lending pools played a crucial role in mitigating selling pressure on USDC. USDT is gaining traction, and Smart Money wallets are increasing their USDT holdings. The stablecoin market remains vulnerable to external crises, and a truly decentralized stablecoin is still sought after.

2. Ascending the NFT Ranks: A Spotlight on Top Wallets and Their Strategies

Frank's research on successful NFT traders reveals that they’re focusing on collections such as Otherside Koda, Otherside Vessels, Otherdeed Expanded, Otherdeed for Otherside, CaptainZ, HV-MTL, and Nakamigos. Interestingly, we found that one particular address, justaboredchad.eth, made 168 trades on 26 April. By comparing the average PnL in ETH with ETH price in USD, analysts can assess risk appetite in the NFT market. 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.

3. A Look into Decentralized Social Networks

In recent months, decentralized social networks have experienced significant growth, with prominent protocols like Lens Protocol, Farcaster, and CyberConnect attracting more users. These networks allow users to access their social graph, giving them control over their social capital and monetization, and making it easier for developers to build on top of existing layers. Xin Yi analyzes various decentralized social networks and shares her insights on their architecture, features, and development. 

4. Of the US dollar, and of Crypto

The resilience of US growth and inflation is likely to lead to pricing out of Fed rate cuts after September 2023. Despite this, we might see bank lending contraction lead to lower growth rates over time. This may result in short-term resilience for the US dollar before resuming its downward trend in the coming months. Crypto is predicted to maintain its range-bound price action until macro weakness forces the Fed to ease policy. Aurelie shares her thoughts on the current macro environment and key data points to look at. 

That's a wrap for this week! We hope you found this content to be valuable and informative. If there's anything you'd like to see in future issues, just let us know.

Head to our Research Portal to get more insights!

Disclaimer

The authors of this content and members of Nansen may be participating or invested in some of the protocols or tokens mentioned herein. The foregoing statement acts as a disclosure of potential conflicts of interest and is not a recommendation to purchase or invest in any token or participate in any protocol. Nansen does not recommend any particular course of action in relation to any token or protocol. The content herein is meant purely for educational and informational purposes only and should not be relied upon as financial, investment, legal, tax or any other professional or other advice. None of the content and information herein is presented to induce or to attempt to induce any reader or other person to buy, sell or hold any token or participate in any protocol or enter into, or offer to enter into, any agreement for or with a view to buying or selling any token or participating in any protocol. Statements made herein (including statements of opinion, if any) are wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader or any other person. Readers are strongly urged to exercise caution and have regard to their own personal needs and circumstances before making any decision to buy or sell any token or participate in any protocol. Observations and views expressed herein may be changed by Nansen at any time without notice. Nansen accepts no liability whatsoever for any losses or liabilities arising from the use of or reliance on any of this content.

Join 100,000+ Investors Getting Their Trading Edge From Nansen