DeFi

If you treat the entire crypto market as one balance sheet, it's kind of bizarre when any particular news event calls certain news "bearish" with a small dip.

The reason is most of the liquidations convert to stablecoins, so value is being transfered from leverage traders to leverage suppliers. This is just a risk swap, but the overall balance sheet of crypto means the stablecoins have just changed hands. They weren't created or destroyed. The overall balance sheet does not expand or contract in these deleveraging events, so the overall crypto economy is stable.

As long as stablecoin TVL keeps going up, this means were just *expanding* activity. The price can go down 50%, but as long as its just a value swap between people onchain, its actually not bearish at all.

This is why I'm more interested in stablecoin metrics for protocols. Price is a meme, but expanding the balance sheet is a direct measurement of onchain activity.

like this way of thinking about it. good for the relentless optimists

If you here for the long-term, how can you be bearish 

Ima bookmark this one and frame it later 👌