Morgan Stanley said that while the market value of stablecoins, an indicator of crypto liquidity, has stopped falling, demand for leverage has not yet begun to recover.
Institutional investors stopped using stablecoins and ended the market cap crash of coins, an indicator of liquidity in the cryptocurrency market. Despite this, there has been little demand for re-opening, Morgan Stanley said in a recent research report.
Morgan Stanley: Low Reopening Demands
According to the report, the market value of cryptocurrencies, whose value is tied to real-world assets such as gold or national currencies, did not fall on a monthly basis for the first time since April. While still 20 percent below its peak, this was seen as a sign that excessive corporate shaking seems to have stalled for now.
The bank stated that the fire in stablecoin Tether (USDT) has stopped and the market cap has really risen in the last week, increasing $1.7 billion in 10 days.
Stating that there is not much demand for borrowing to finance crypto investments, as central banks continue to tighten their monetary policy, Morgan Stanley also stated in its report that the rate of lending to decentralized finance (DeFi) platforms has dropped by 70 percent this year.
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