Stablecoin ‘dust’ txs on Ethereum triple post-Fusaka: Coin Metrics

💡 DMK Insight

Dust transfers making up 43% of USDC and USDT balances signal a potential liquidity issue. When a significant portion of transactions involves tiny amounts, it raises questions about market engagement and the health of trading activity. Traders should be wary; this could indicate that many holders are inactive or waiting for better conditions to trade. If liquidity continues to dwindle, it may lead to increased volatility, especially during market shifts. Look for related assets like ETH and BTC to see if they reflect similar patterns. If these major coins also show signs of reduced trading volume or increased dust transfers, it could amplify concerns about broader market sentiment. Keep an eye on the daily transaction volumes and any shifts in the percentage of larger transfers, as these could provide clues about potential reversals or continued stagnation in the market.