The discrepancy between technicals and fundamentals isn’t exclusive to L1s anymore.

The stablecoin market is showing a similar trend this year. Technically, Tether’s USDT is down over 2.5% over the past 12 months. And with USDT accounting for more than 50% of the total stablecoin market, its outflows are still a major contributor to the stablecoin market’s almost $8 billion drop from its yearly opening market cap of $315 billion.

However, despite the outflows, stablecoin adoption has continued to gain ground. Notably, South Korea’s government and the Bank of Korea are planning to amend the Foreign Exchange Transactions Act this year to recognize stablecoins as payment instruments, underlining growing regulatory support around…