Over the past few weeks, stablecoins, crypto-assets tied backed by a “stable” reserve asset, have become increasingly important to the cryptocurrency market. First, just assets used by the fringe, this subset of altcoins now accounts for a growing percentage of the crypto market’s value.
In fact, according to April 20th data from blockchain analytics firm Coin Metrics, the value of all stablecoins in circulation just passed over $9 billion for the first time ever. What’s especially interesting about this stat is six weeks ago, the aggregate value of all stablecoins was $6 billion.
The common narrative goes that this is decisively bullish for the crypto market, with many suggesting that the growing value of stablecoins is money being prepared to be thrust into Bitcoin, Ethereum, and other cryptocurrencies.
But, this narrative may not be 100% true, with some suggesting the demand for stablecoins is increasing for other reasons that may actually show crypto investors are rattled, or at least are not willing to buy Bitcoin at the moment.
The Rapid Surge in Stablecoins Isn’t 100% Bullish for Crypto
If you’ve perused Crypto Twitter over the past few weeks, you likely know that stablecoin issuers — like Tether, Binance, Gemini, amongst other firms — have been minting stablecoins at a rapid clip.
Case in point: just last week, there were two days in a row during which $120 million mints of USDT took place.
According to Sam Bankman-Fried, the CEO of crypto exchange FTX and Bitcoin trading fund Alameda Research, this phenomenon of the rapidly increasing stock of USDT can be attributed to three main factors:
Over-the-counter traders, “primarily from Asia,” are looking to acquire USDT. Although Bankman-Fried did not elaborate on this assertion, it is a known fact that Chinese traders use Tether’s solutions because they can’t access the crypto markets in any other way. Some have also suggested that USDT is a good way to move money around the world, even if one doesn’t want to interact with Bitcoin.
People are selling crypto-assets for USDT to “hedge positions.”
People are selling crypto-assets for USDT to “reduce risk.”
Presumably, these points apply to other crypto stablecoins that have seen rapid supply growth over the past two months.
The common theme between these three factors is that USDT may not be being used to buy Bitcoin in size at the moment.
Still Bullish for Bitcoin
Although Bankman-Fried and other market participants have this thesis, there are signs that eventually, that sell-side demand will turn into buying pressure.
Ryan Selkis, CEO of Messari, explained that per data garnered by his company, there is now $3 billion worth of stablecoins sitting on exchanges. The fact that the stablecoins aren’t leaving the exchanges, he implied, is a sign that investors are willing to buy back into Bitcoin, eventually. Selkis elaborated:
“If investors wanted to cash out of crypto completely, they would have withdrawn funds to banks. Instead, we’ve got more dry powder held in the crypto economy than ever before.”
There's now $3 billion++ of stablecoins sitting on exchanges.
If investors wanted to cash out of crypto completely, they would have withdrawn funds to banks.
Instead, we've got more dry powder held in the crypto economy than ever before.
In both real and market cap % terms. pic.twitter.com/rCEYNqcMY0
— Ryan Selkis (@twobitidiot) April 17, 2020
Photo by Jingda Chen on Unsplash origin »
The stablecoin market has seen major shifts in March, with Ethena’s USDtb breaking into the top 10 stablecoins by market cap, Tether losing 61% of market dominance, and EURC’s market cap reaching a new all-time high.
The purchasing power of the market rose as stablecoins' combined market cap spiked
Bitcoin can gain from greater stablecoin whale supply
The market cap of stablecoins including Tether [USDT]The post Stablecoins' growing market cap is great for Bitcoin only if… appeared first on AMBCrypto.
On-chain data from Glassnode shows market participants averting risk and seeking shelter in stablecoins and BTC as the crypto market nears a decisive move.
For the 14th consecutive month, the total market cap of stablecoins continues to shrink, standing at a modest $130 billion in May – a startlingly low point unseen since September 2021. But, as their numbers dwindle, the crypto market faces…
The total market capitalization of stablecoins fell by 0.68% in February.
Recent regulatory measures have affected the performance of these tokens.
According to a 22 February CryptoCompare rThe post Stablecoins at their lowest market cap since 2021: Report appeared first on AMBCrypto.
While a considerable percentage of market watchers have maintained a persistent bullish outlook towards the crypto markets despite the steadfast bear market, some investors have resorted to stablecoins in what appears to be an attempt to find safety in the security the assets provide over the sharp volatility that characterises the markets. New research has […]
2020 has been the year of stablecoins, as the token supply has doubled in the last three months. The aggregate market capitalization of 28 stablecoins captures over $20 billion on October 4, 2020.
Amidst the ongoing cryptocurrency bear market, stablecoins have continued to gain prominence, with USDT currently comprising the dominant pairing for three of the four largest cryptocurrencies by market cap.
The cryptomarket has always been volatile. Out of that market volatility, stablecoins have emerged. Stablecoins are cryptocurrencies backed by real assets, such as fiat, gold, and so on. However, they stayed in the background for quite a long time, only gaining popularity when the market fell drastically.
Stablecoins have gained massive popularity during the past year as the cryptocurrency market tumbled from all-time highs starting February 2018. One of the lesser-known stablecoins, Dai (Dai) has quietly been increasing its adoption as shown by the 7,300 addresses being opened monthly for the token.
An executive named Phil Potter, which has already worked in high-profile crypto companies like Bitfinex and Tether before, as well as XBTO, has recently announced that he is launching a new clearinghouse for stablecoins in the crypto market, which will be called Stablehouse.
Having entered the TOP-10 coins, TRON has aroused among community a growing interest to entertainment. This interest is logical, because TRON as a tank, or as World of Tanks, rushing ahead for several weeks.
CryptoNinjas
Bitspark, a cryptocurrency money transfer platform, has launched Sparkdex. HKD – the first market-ready cryptocurrency pegged to the Hong Kong Dollar (HKD). “Until now, US Dollar stablecoins have dominated the market but there are other.
CoinSpeaker
Stablecoins in 2019: Exclusive Comments from 10 Industry Executives
Kirill Bezverhi, professional marketer, blockchain and crypto enthusiast, shares exclusive comments from representatives of 10 leading stablecoin projects, taking a look into market trends we will most likely see in 2019.
Stablecoins are a welcome attempt to bring stability to the digital assets market. Much like a country pegging its volatile currency to a more stable country’s currency in an effort to make its economy more predictable and attractive to investors, digital assets issued by companies like Tether and Haaven are anchoring to the U.
CoinGecko published on January 15th its 2018 yearly crypto report. The 83 pages document provided valuable insights covering the downtrend that spanned around the last year, and its implications on the market.
The previous year has been marked by a lot of things, including high-profile crypto exchange hacks, two market crashes, a year-long bear market, and of course — stablecoins. 2018 has been quite an eventful year for fiat pegged coins, which started emerging due to high volatility of regular cryptocurrencies. The most popular stablecoin, Tether (USTD) […]
Not without an ample dose of skepticism, 2018 can indeed be referred to as the year of the stablecoin. Amid total backlash against Tether, and yet high demand for stable cryptocurrency as a means of settlement, a growing cohort of stable coin solutions were rolled out to the market.
The cryptocurrency market has seen a sudden dip today 10 January 2019. All top ten cryptocurrencies are victims and a look at the top 100 cryptocurrencies shows only two coins Aurora (AOA) and Maximine Coin (MXM) are in the greens.
The end of 2018 wrapped up what has been one of the worst year’s for the crypto market, with Bitcoin dropping to its lowest levels for the year. But as we enter the first full working week of 2019, what can the market expect throughout the year? With Bitcoin sitting, for now, above the $4,000 […]
The post eToro: Preference for Stablecoins as Alternatives to Continue in 2019 appeared first on Coinjournal.
On December 4, 2018, our CEO, David Bailey, made an exciting announcement: Bitcoin Magazine would be returning to its roots and shifting its focus to Bitcoin-related stories only.
Welcome to the final installment of The Daily for 2018. It seems fitting that the year’s ultimate edition should focus on one of 2018’s overarching themes within the cryptoconomy – stablecoins. We’ve also got space to squeeze in a critique of Augur’s crowdsourced prediction market and to consider yet another bitcoin-based Patreon alternative.
Bitcoin (BTC) and virtual currencies had a very moved year since the very beginning. During the whole year, virtual currencies were falling and reaching new lows in the last year. However, there are some other things that are worth mentioning during 2018.
Gains in stablecoin dominance indicate that the market outlook is bleak. Tether is now fourth by market capitalization with a total of over 1. 8 billion USDT in circulation, while market dominance of stablecoins sits at highs of 2.
Stablecoins have increased in popularity over the past few months, and one of the many reasons for this surge has been the volatility of the crypto market. This summer, some of the largest crypto exchanges provided listings of the most popular stablecoins on their platform, with the Gemini Dollar, Paxos, and True USD among some […]
The post ‘Basis,’ Andreessen Horowitz-backed Stablecoin project, Will be Shutting Down appeared first on Coinjournal.
As the overarching cryptocurrency market slump continues, there is a growing demand for assets which are perceived at stable Although stablecoins would usually fit that bill, Dogecoin also makes an interesting case for itself.
New and Upcoming Platforms Are Tracking Major Market Based Stablecoins Over the past few months of 2018, we have seen the inclusion of a large number of coins, more importantly, we see the arrival of challengers to the otherwise greater level of dominance to the otherwise leading stablecoin in the market. This, of course, would […]
Stablecoins have experienced a meteoric rise in popularity during the second half of 2018, with currencies such as TrueUSD, USDC, Paxos, and GUSD experiencing a 1032 percent increase in on-chain transactions took place in November vs.
The Story of Boaz Manor and the $31 Million Blockchain Scam in Blockchain Terminal ICO The Story of Boaz Manor and the $31 Million Blockchain Scam in Blockchain Terminal ICO Stablecoins Continue to Grow Amid Bitcoin Uncertainty and Crypto Market Death Spiral Stablecoins Continue to Grow Amid Bitcoin Uncertainty and Crypto Market Death Spiral Notorious […]
The birth of more stablecoins, which has coincided with significant market losses for traditional cryptocurrencies, has drawn attention to these fiat-pegged digital assets. Dedicated platforms are now aggregating statistical data about stablecoin markets for the benefit of traders.
Tether seems to be slowly gaining on other cryptocurrencies in the top five list, despite its continually falling market capitalization trends. Though the market is still in ruins following the recent crash in price of major assets, the digital cryptocurrency buyers of the world have invariably turned their attention to stablecoins as a viable way […]
Cryptocurrency, Stablecoins–With Bitcoin making a shaky climb closer to $4000, the entire industry of cryptocurrency is still reeling from hitting a relative low on the year last week. Since the start of the year, the number one cryptocurrency by market capitalization is down nearly 80 percent since peaking close to $20,000 in December 2017.
The down in the cryptocurrency market has led to an increase in stablecoin issuance. Right now, there are over 50 stablecoins being offered today. The big question here is how stablecoins are going to fare in the coming year.
The price of digital assets can swing wildly in either direction – no questions about it. However, this year has mostly seen a bear market with the majority of coins down by more than 70 percent from their peak value.
As 2018 began, with only two competitors, Tether commanded 94 percent of the stablecoin market. With the year seeing the emergence of 8 new players in the space, that dominance has fallen to 74 percent.
Bitfinex and Ethfinex users will now be able to trade in all six major stablecoins available in the market. The platforms were already providing Tether and DAI for trading. The four newly added stablecoins are USDC, Paxos Standard Token, Gemini Dollar and True USD.
Are you interested in having more options for using other stablecoins that are not Tether USD? Well, we got great news for you. Bitfinex and Ethfinex will start to offer the six major stablecoins in the market starting soon.
Cryptocurrency exchanges Bitfinex and Ethfinex now support trading for all six of the market’s major stablecoins. Adding to its support for MakerDao’s Dai and Tether’s USDT, the sister platforms recently listed USD Coin (USDC), TrueUSD (TUSD), Paxos Standard Token (PAX) and Gemini USD (GUSD).
Stablecoins are currently the fastest growing sector of the cryptocurrency market, worth $186 billion; these constitute cryptocurrencies whose values are pegged to real life commodities like gold or the US dollar.
Blockchain Payroll Platform WorkChain. io has partnered with tokenization platform STASIS to enable euro-backed crypto paychecks for its European Union (EU) users with the EURS stablecoin.
There are many different virtual currencies all over the world, including the so-called stablecoins. These virtual currencies work as other digital assets, but they have a very important difference, their price is more stable than the rest of the cryptos in the market.
Crypto markets have plunged as much as 80 percent since their all-time high. Some currencies, however, were designed to protect investors from such catastrophic events. The recent market crash was an assessment of these “stablecoins” – whether they were able to keep the investments steady, or if they failed outright.
Cryptocurrency, Stablecoins–The last two weeks have been a tumultuous time for cryptocurrency investors and advocates, who have watched the market capitalization of the industry fall by $90 billion, or nearly half of its valuation since the start of the month.
Tether is launching a new liquidity portal, one that will finally allow the direct redemption of Tether’s stablecoin USDT back into fiat. According to a new report released on the company’s website, Tether is going to “launch a redesigned platform allowing for the verification of new customers and direct redemption of Tether to fiat.
CoinSpeaker
Binance Creates Unified Market to Give Further Push to Stablecoin Trading
In order to boost wider adoption of stablecoins, cryptocurrency exchange platform Binance is creating a combined stablecoin market.
A new framework would allow trading, custody, and approved coins. Banks must follow strict KYC, AML, and CNV regulations. High inflation has pushed people toward Bitcoin and stablecoins. Argentina is preparing for a major shift in how its financial system treats digital assets, with regulators working on a plan that could allow banks to offer […]
The post Argentina moves to reshape crypto rules as banks prepare for Bitcoin services appeared first on CoinJournal.
Western Union is building a stablecoin-backed prepaid card targeting countries with high inflation rates. The money transfer giant plans to offer the product in markets where local currency depreciation erodes purchasing power, CFO Matthew Cagwin told the UBS Global Technology…
UPay, a global crypto payment card provider, has entered a strategic partnership with StraitsX, a Singapore-based stablecoin-native settlement layer, aiming to build foundational financial infrastructure that supports everyday stablecoin payments worldwide.
Stablecoins will be officially recognised as a payment method starting January 1, 2026, in Uzbekistan as part of a broader effort to modernise the country’s financial landscape. Sandbox to test stablecoins and tokenised assets The Uzbekistan government has established a regulatory sandbox under the supervision of the National Agency for Perspective Projects, working closely with […]
