Leveraging lending and borrowing metrics to decode crypto market cycles
Santiment analytics platform revealed that DeFi lending and borrowing metrics can help investors better analyze crypto market cycles. The firm also noted that interest rates, debt levels, and liquidation events can reveal when markets are overheated or bottoming out.
The analytic platform showed that when borrowing rates spike above 10% to 15%, it often signals a market top driven by excessive demand for leverage. Low and flat rates over several weeks can indicate a market bottom, where speculation has died down, and re-entry points may appear.
DeFi lending and borrowing metrics help investors analyze crypto market cycles
Santiment analytics acknowledged that lending and borrowing data can provide traders with unique insights into…
