Appetite Performance
Risk Appetite — an artificial indicator showing the dynamics of inflows and outflows of free liquidity in decentralized markets through the issuance of stablecoins.
How to Read This Chart
The Treasury uses the risk appetite indicator as a key measure of market sentiment. Liquidity outflow indicates conservative sentiment and higher cost of monetary instruments. Inflow suggests positive market sentiment and a willingness among buyers to make purchases.
NB: stablecoins are actively used in foreign trade settlements and other purposes. Therefore, they cannot be perceived as a 100% indicator of liquidity inflows/outflows in cryptocurrency markets. Liquidity growth should be assessed in the context of ecosystems, where growth in DeFi-oriented blockchains can be considered a positive signal for purchases.
Calculation
The indicator is calculated daily as the total capitalization of major stablecoins: Tether, USD Coin, and DAI.
Backlog v.0.4
Add a trend line and overlay the Global Market Cap performance