Despite increased regulatory activity in the U.S. and weakness in the stock market over the past week, cryptocurrency markets have remained resilient, according to a research report from Citi on Friday. While correlations with equities have continued to decline from last year’s highs, on-chain and search activity have not been as durable. However, volumes remain robust, and stablecoin market caps have steadied after declining due to the collapse of FTX. The report also notes that the percentage of ether in smart contracts continues to rise.
Stablecoin Outflows Follow SEC Plan to Sue Paxos
The U.S. Securities and Exchange Commission’s plan to sue Paxos, the issuer of stablecoin binance USD (BUSD), has resulted in more than $3.5 billion in BUSD outflows, representing a 23% fall in market capitalization, according to Citi. The outflows have generally made their way into rival stablecoin tether (USDT), the bank said.
NFT Activity Increases While Crypto Search Interest Remains Low
Non-fungible-token (NFT) activity has increased in recent weeks, though transaction levels remain far below 2022 averages, Citi noted. Meanwhile, crypto search interest remains low despite the year-to-date rally in digital assets.
Source: CoinDesk
