HBD Supply Contracted For Almost One Million In The Last Ten Days

Ten days ago the HBD circulating supply (excluding DHF) was around 9.6M and now we are at 8.7M HBD.

If we look at the HBD conversions, excluding the @hbdstabilizer we get this.

We can see the obvious jump in the conversions from users, up to 120k HBD on Nov 13th. These conversions started 3.5 days ago, so the initial round of conversions was triggered somewhere around Nov 10. This is at the time when FTX imploded and crypto prices went down a lot, pushing the HBD price down as well.

Conversions were used to arbitrage this as users can still get one dollar worth of HBD in HIVE. A total of 250k HBD was converted to HIVE in the last ten days from regular users, excluding the stabilizer.

If we include the stabilizer we get this:

Obviously the stabilizer is doing much more volume. For the period in which the HBD price was bellow the one dollar, 90% of the conversions come from the stabilizer. It doesn't mean that all this HIVE was used to buy HBD as some is sent back to the DHF, but still we can say that the stabilizer has a dominant role in the support of HBD. Regular users conversions has been active as well, but the price drop in the HBD wasn't that big for a long period of time to allow more of those to happen. Because of the 3.5 days of conversions, there is a price risk from HIVE and users want to see a bigger margin in the HBD price before deciding to make the arbitrage.

The other side of this equation is that the HIVE supply has increased, but still not as much. Also it seems that the drop in the HBD supply has bottomed out, the HBD supply on Upbit is at all time low, 4.2M HBD is in savings, and there is not much more tokens out there.

Overall the system is working as deigned in this turbulent times :)