The market is continuing on yesterday’s consolidation, with BTC and ETH moving lower. L1s like SOL, LUNA, and FTM were affected the most given the L1 run-up the past week. AVAX and BNB, however, remained resilient during this pullback. From the NFT universe, CryptoPunks do not seem to be fazed as floor prices pushed up for another leg, going from ~63 ETH to ~78ETH (+24%) today.
USDT Grows, USDC Lags
USDC was one of the most favored stablecoins, with exponential growth over 2021. This was, in part, due to higher confidence in USDC as it held reserves in cash compared to USDT’s reserve, which has higher risk through commercial paper (a form of unsecured debt) holdings. USDT’s underlying risks were thus higher than USDC’s. However, in a recent turn of events, USDC’s reserve was revealed to also have riskier assets like commercial papers and corporate bonds, albeit lesser than USDT. And that could’ve