Stablecoin Growth Poses $500B Risk to Bank Deposits
- Deposit Flight Risk: As stablecoin adoption rises, with total supply increasing by approximately 40% over the past year to over $300 billion, it is estimated that stablecoins could lead to a $500 billion deposit outflow by 2028, posing long-term funding concerns for banks.
- Legislative Impact: The growth of stablecoins may accelerate following the passage of the Clarity Act, which aims to regulate the digital asset industry, potentially threatening traditional banks' core payment networks.
- Regional Bank Vulnerability: Analysis indicates that regional U.S. financial institutions like Huntington Bancshares and M&T Bank are at higher risk of deposit flight due to their greater reliance on traditional lending activities and a higher share of net interest income in total revenue.
- Market Performance and Outlook: While the KBW Regional Banking Index rose nearly 6% in January, the long-term risk posed by stablecoins will depend on banks' responses, especially as Tether and Circle hold minimal reserves in bank deposits, indicating limited re-depositing activity.
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Technical Analysis for STABLE
Technical Sentiment Analysis for (STABLE) As of , (STABLE) is exhibiting a Buy technical sentiment. Our proprietary analysis, which aggregates 7 technical signals, shows that 5 indicators are flashing buy, while 2 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for STABLE stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, STABLE is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
(STABLE) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | -0.00283 | 0.00635 | 0.0143 | 0.0235 | 0.0315 | 0.0407 | 0.0487 |
| Fibonacci | 0.00635 | 0.0129 | 0.017 | 0.0235 | 0.0301 | 0.0341 | 0.0407 |
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