The stablecoin lending rates on OKX are a great indicator for observing market sentiment. While professional users can weigh the stablecoin rates across several platforms for long-term curve observation, for most retail investors, monitoring the rates on #OKX is actually sufficient!
Since the industry turmoil on October 11, the overall stablecoin lending rates have dropped from 2% to a recent low of 1%. This low rate has persisted for several days. As the saying goes, "the spring river water warms, the duck knows first." Rate fluctuations are an emotional indicator of how smart money uses leverage to judge future market conditions. From our long-term observations:
When rates are maintained at 5% or above, the market often experiences a relatively active period, with significant profit effects. This was typically seen from October 1 to October 8, as well as throughout early to mid-September.
When rates are maintained between 3% and 5%, it indicates a localized market trend, where there may be specific hotspots, but overall performance is lacking. The market is in a stage of divergence, which tests the ability to grasp trending coins or sectors.
When rates are maintained below 3%, it indicates a sluggish market, with low market sentiment and weak profit effects, making it suitable to rest and avoid trading.
Currently, during this market calm period, it may be advisable to consider investing funds in #OKX's 3-month fixed-term financial products, which offer annual returns of 4%, 5%, or 6%, randomly available and requiring a bit of a rush to secure. The benefit of this approach is that it passively allows some funds to exit the trading market, as they cannot be redeemed within three months. This effectively avoids profit drawdowns during high volatility in a bull market. In this phase, how to effectively preserve the gains from the bull market is worth contemplating! 🧐
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