To understand the trends of USD1 and LISTA, it is essential to consider the macroeconomic environment.

Currently, the global interest rate policies (especially the stance of the Federal Reserve) and the cyclical stage of the crypto market directly influence the performance of these two assets.

**The Paradox of the High-Interest Rate Era**

High risk-free yields in traditional finance do draw some funds away from the crypto market. However, stablecoins like USD1 that generate interest might actually present opportunities — the returns from lending could surpass bank fixed deposits, making them attractive for capital inflow. From another perspective, this is actually a hidden positive for LISTA.

**Different Market Cycles, Different Stories**

During a bull market, market risk appetite soars, and demand for borrowing skyrockets (leveraging, expanding positions, and so on). The minting volume of USD1 will increase significantly, and protocol revenues will rise accordingly. At this time, LISTA benefits not only from revenue growth but also from the more "generous" valuation of governance tokens during the bull market.

Conversely, in bear or volatile markets, investors' risk-averse sentiment prevails, and the stablecoin nature of USD1 becomes a "safe haven" — demand may stay steady or even grow. Although LISTA, as a risk asset, might be sold off, the protocol’s continuous burning and staking reward mechanisms provide it with a layer of defensiveness that other small tokens lack.

**Current Stage Judgment**

The market is now in a phase of recovery from the bear market, with macro uncertainties still present, forming a volatile bottoming process. During this period, the stability and practicality of USD1 are decisive factors, while LISTA may experience a "step-in, step-back" spiral upward.