2 metrics signal the $1T crypto market cap support likely won’t hold

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$1 trillion crypto capitalization is a weak support level according to Asian stablecoin demand and altcoin futures, says noshitcoins.

) 16.5% gains. Moreover, the Ethereum network has remained clogged, with average transaction fees above $3 for the past three weeks.The USD Coin premium is a good gauge of China-based crypto retail trader demand. It measures the difference between China-based peer-to-peer trades and the United States dollar.

Excessive buying demand tends to pressure the indicator above fair value at 100%, and during bearish markets, the stablecoin’s market offer is flooded, causing a 4% or higher discount.Currently, the USDC premium stands at 100.8%, flat versus the previous week. Therefore, despite the 8.5% cryptocurrency market capitalization increase, no additional demand came from Asian retail investors.

A positive funding rate indicates that longs demand more leverage. However, the opposite situation occurs when shorts require additional leverage, causing the funding rate to turn negative.As depicted above, the accumulated seven-day funding rate is either slightly positive or neutral for the largest cryptocurrencies by open interest. Such data indicates a balanced demand between leverage longs and shorts .

Considering the absence of stablecoin demand in Asia and mixed perpetual contract premiums, traders lack confidence even though the total crypto capitalization broke above the $1 trillion mark.and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

 

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