Capital Utilization on Compound
Crypgoat returns to examine market leverage ratios on Compound.
It’s time to take a look at market leverage ratios on Compound with our friend Crypgoat. These ratios can be used to understand investor sentiments toward risk.
We’ll start by looking at total capital utilization on Compound over the past week. As Crypgoat points out, total capital utilization on Compound has fallen from 58% to 40%. This indicates that investor sentiment on Compound has trended toward lower risk.
It’s also important to keep in mind, however, that falling leverage ratios have not generally been driven by decreased borrowing. Instead, as we can see below, these drops are typically driven by explosive growth in capital supplied.
There’s a lot of great analysis from Crypgoat that we couldn’t fit into this blog post, so if you want the full store on stablecoin prices, make sure you check out the original bounty submission this data came from!
