Decentralized social media platforms are gaining popularity, according to Nansen, a firm specializing in onchain analysis. These platforms, such as Lens Protocol, Farcaster, and CyberConnect, offer users a Web3 social network that enables them to control their data and create a decentralized identity system.
This personalized experience over social capital and monetization opportunities is the driving force behind the increased user attraction to these platforms.
No advantage in the diversification of stablecoins
Nansen further noted that for stablecoins, users seeking to diversify from USDC did not gain any significant benefits by switching to either DAI or FRAX due to its de-pegging. The USDC de-peg event had varying effects on other stablecoins, with DAI and FRAX closely mirroring USDC.
Correlation matrix analysis revealed strong positive correlations between DAI, USDC, and FRAX, “implying that holding the three different assets offered no real diversification”.
USDC is a fiat-based stablecoin issued by Circle, while DAI is an algorithmic stablecoin issued by MakerDAO, designed to maintain a one-to-one ratio with the US dollar.
FRAX represents the first fractional-algorithmic stablecoin protocol, offering highly scalable, decentralized, algorithmic money as an alternative to fixed-supply digital assets like Bitcoin.
Moreover, the findings indicate that lending pools have helped to mitigate any selling pressure on USDC as USDT gains traction. Additionally, the best-managed wallets, based on on-chain evidence, are purchasing and accumulating more USDT.
Lastly, concerning stablecoins, Nansen observed that the “market remains vulnerable to external crises, and a truly decentralized stablecoin is still sought after”.
Otherside NFTs ruling the chase; US banks to offer fewer loan
NFTs weren’t overlooked in the report. It revealed that successful NFT wallets spent more money acquiring popular collections such as Otherside Koda, Otherside Vessels, Otherdeed Expanded, Otherdeed for Otherside, CaptainZ, HV-MTL, and Nakamigos. A whale wallet, justaboredchad.eth, made 168 trades on April 26th.
The report’s final disclosure indicated that “the resilience of US growth and inflation is likely to lead to pricing out of Fed rate cuts after September 2023”.
However, there’s speculation that a reduction in bank lending may lead to lower growth rates, while crypto prices could remain range-bound until macro weakness forces the Fed to ease policy.