Liquidity and trading
100 %
Final index:
The main barometer of market sentiment, calculated on a scale from 0 to 100, evaluates the aggregate capital movement based on stablecoins. The range of 0–25 is classified as Extreme Risk-On (maximum risk appetite), while the zone of 91–100 is Extreme Risk-Off (maximum investor flight to safe-haven fiat equivalents).
Market Dominance:
Shows the share of the global cryptocurrency market capitalization that stablecoins represent (scaled from a minimum of 0% to a maximum of 100%). The consistent increase in this share confirms market participants' caution and their transition to a wait-and-see approach.
Liquidity and trading:
Determines the percentage of daily trading volume on exchanges that is allocated to stablecoin trading pairs (ranging from a minimum of 0% to a maximum of 100%). This parameter indicates how closely current trading processes and order book depth are tied to stablecoins.
Emission dynamics:
A unique indicator tracking the ratio of the current supply of stablecoins in smart contracts to their 30-day average monthly value according to DefiLlama (ranging from a minimum of 0% to a maximum of 100%). It demonstrates the net inflow or outflow of capital from the crypto economy.
HCN Stablecoin Index Pro 3.0: Crypto Winter and Bull Cycle Navigator
The cryptocurrency market is known for its extreme volatility. With traditional digital asset prices fluctuating by tens of percent per day, investors need a reliable barometer to determine global trends. HCN Stablecoin Index Pro 3.0, a unique tool developed by the team, provides just such an analytical system. Happy Coin News to monitor market sentiment and assess the actual adoption of stablecoins.
The essence of the index
Unlike standard metrics that solely evaluate Bitcoin's performance, the HCN Stablecoin Index Pro 3.0 focuses on the "digital dollar" (stablecoins such as USDT, USDC, and DAI). In the crypto economy, stablecoins serve as a safe haven and simultaneously a key source of liquidity. When panic mounts in the market, investors flee to cash, causing stablecoin market capitalization and trading volumes to surge. During periods of euphoria, stablecoins are actively exchanged for volatile altcoins. Therefore, by studying the behavior of stablecoins, it is possible to accurately determine the risk-on (risk appetite) and risk-off (risk aversion) phases.
Methodology and mathematical model of calculation
The index is calculated automatically every hour on a scale from 0 to 100 points based on the integration of data from major aggregators CoinMarketCap and DefiLlama. The final value is calculated using a weighted formula combining three fundamental components, each of which is pre-normalized on a scale of 0–100:
- Market dominance: Calculated as the ratio of the market capitalization of the top 10 stablecoins to the total market capitalization of the entire cryptocurrency market. An increase in this indicator signals conservative cash accumulation.
- Liquidity and trading: Shows the share of daily trading volume in stablecoin pairs out of the total trading volume on exchanges. Demonstrates the dependence of trading infrastructure on stablecoins.
- Supply Growth: Shows the ratio of the current supply of stablecoins in smart contracts to their 30-day average monthly value. An increase in supply indicates a net inflow of institutional fiat capital into the industry.
The results are interpreted using a sensitive six-point scale, where values of 0–25 indicate Extreme Risk-On , 40–60 indicate Neutral , and 60–75 triggers the important Cautious status . The 91–100 range indicates Extreme Risk-Off , or maximum capital flight.
Who is this tool useful for?
- For tradersThe index helps avoid opening positions against the global trend. Moving into the Cautious or Risk-Off zone is a direct signal to reduce margin positions and prepare for a correction.
- Investors: Allows you to find ideal long-term entry points. Extremely high index values (market panic) often coincide with local Bitcoin bottoms, opening up buying opportunities.
- For analysts: Thanks to the dataset markup and API, the tool serves as a ready-made independent macroeconomic dataset for modeling market cycles and writing analytical reviews.