Banking giant Citi discussed the decline in the crypto market in its latest report.
Citi released a report on Tuesday. The report said that after the UST collapse, concerns about stablecoins increased, which made the market downturn worse. Analysts pointed out that there are exits from the largest stablecoin Tether (USDT).
Noting that the number of active addresses and transaction volume increased during the UST and LUNA collapse, the bank said that this indicates user adoption, and therefore volatility affects adoption. On the other hand, the bank claims that the interest of the investors is not temporary, in other words, the interest of the investors in general is not lost.
The bank also said that while the event was hot, there were concerns about USDT outflows, but now that it’s slowing down. During the event, some users switched to stablecoins that they found more reliable, such as USD Coin (USDC), while some users left the market completely.
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