R Notebook

USDC + USDT = 80% of global stablecoin market capitalization. Here, our sample represents more than 90% of the stablecoin market capitalization.

Models

We estimate the following local projection model :

\[ Y_{i,t+h}-Y_{i,t-1}= \alpha_i + \beta^h X_t + \gamma Z_t + \mu_{i,t} \] Where \(Y\) is the log-difference of stablecoin market capitalization, \(\alpha_i\) is an individual FE, and \(X_t\) is our index of speech CBDC-related sentiment/stance. \(Z_t\) are control variables representing the VIX and the GPRD and their lags, and dummies representing Terra-Luna and FTX crashes. We include individual (\(\alpha_i\)) fixed-effects.
Note : we take the 95% interval confidences for all estimations. Standard errors are heteroskedasticity robusts (clusterized by stablecoin).

Daily

Sentiment / Stance

In addition, we can decompose the market capitalization effect on two effects : the price effect, and the supply effect. We retrieve both price and supply from Artemis.xyz.

ECB vs other