Stable Coin Minting & Momentum

Posted January 9, 2021

A friend of mine (thanks Adal) suggested that I look at other stable coins, again observing the relationship between coin issuance and momentum. Given that Circle (USDC) and Binance coin (BUSD) are widely traded, focused on these two coins.

Binance coin is newer than Circle, so I only have history for BUSD from late 2019. However, will compare the signal from these coins for events in 2020.

2020 Covid Bounce

Here is the combined signal for USDC and BUSD during the covid bounce (this looks like a better read than USDT):

2020 Q4 Momentum

USDC and BUSD accumulation is in advance of Q4 momentum:


Analyzing issuance of stable coin gives us a view on buying interest. A good signal would blend information from both of these coins (perhaps looking at the cross-correlation of excitation).