Market Update 05-Apr-2024
A summary of the current market conditions
Table of Content
Stable Coin Lending
Lending rates are slightly softer this week, but still well above 10% for USDT and USDC on most chains. Demand for leveraged trading, that drives some of these high rates, has dropped off this week.
Futures Cash & Carry
Demand for Futures reduced this week with most recent funding rates on perpetuals going negative on BTC and very close to 0% on ETH. Longer term futures have been coming down as well. The Sep2024 ETH future tightened from $301 to $224 above the index price.
Automated Market Making
Fees collected from AMMs remained high for most major pairs and across blockchains as the market volatility remained high. AMMs tend to perform well in high volatility environments.
Delta & Stake
Staking rewards incentivize participants to secure the network, validate transactions, and contribute to the overall health and decentralization of the ecosystem. Staking rewards are relatively stable and tend to decrease over time as blockchains spend their treasuries which in part are used to subsidize these rewards.
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