I wonder how much of that is due to BTC traded by brokers and how much of that is the stable coin dependency via all those automated LPs with high yields.
If I draw a bubble around all crypto markets and look at it only via I/O, wouldn't it be possible to drain the overall energetic level of the system with my 100Billion USD$. I'd be going hard into Stable Coin Assets with good APR only, and then leave the market again at the end of a given period with the profits. I'd have taken the high APR, and took only the platform risk but the overall system that I just left again, has to compensate for the monetary energy balances.
Without BTC strength the health of high APR on the stable will dry up real quick. Have you thought where is the high APR on stable-staking coming from?
My assumption is that the stable coins are constantly illiquid and therefore it doesn't really matter how much is created because they're not used outside of DEFI itself. This means, they just bubble up the market and prove financial utility without getting really tested considering their legitimacy.
That's a fair assumption.
The thing is, we must create lending...true lending in crypto...wide spread. I am talking home loans 30 year mortgages, business loans. Only then stables will be stable.
Wouldn't that mean we have vast loans leaving the crypto space via the FIAT exchanges to buy building materials and pay for construction work?
We might need to get domestic exchanges of goods up first. I'd run a Hive/HBD-based webshop sooner than later. The dream would be a WooCommerce plugin and run with that.
Maybe start with selling PIZZA for Hive, that seems about right for the space :D