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.

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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.

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