Four Changes in the Crypto Market

Summary

Cho Dong-hyun, CEO of Undefined Labs, outlines four structural shifts in crypto: stalled stablecoin growth but rising real-world USDC usage, an RWA market with abundant supply but weak demand except for tokenized stocks, declining on-chain capital yet active RWA-linked lending on chains like Monad, and a clear value rotation from Layer-1 tokens to revenue-generating applications. He also provides a timing framework using DeFi yield spreads and borrowing premiums to gauge market turns.

• Stablecoin market growth has paused, but USDC adoption for payments is expanding rapidly.
• RWA tokenization sees many issuers but limited buyers; tokenized stocks like SK Hynix are the only segment with real demand.
• Total on-chain funds have halved, yet Monad's TVL is surging because RWA-collateralized loans offer lower borrowing rates.
• Network token valuations are falling while application revenues are rising, favoring DeFi apps like Hyperliquid over L1 tokens.
• A positive on-chain deposit yield spread would signal capital inflows and a potential crypto trend reversal.
• When the DeFi borrowing premium exceeds 6%, it indicates excessive leverage and a sell signal for crypto assets.
• The guest advises monitoring these DeFi yield signals to time exposure to Ethereum and other digital assets.