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Stablecoin emission increased to ...

Stablecoin emission grows to $ 7.5 billion in Q1 2020

  • Volume stablecoin supply has grown for the I quarter of 2020 for $ 1.8 billion.

  • Tether is still the largest issuer.

  • The increase in emission had no effect on intraday trading.

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Demand for stablecoins skyrocketed in Q1 2020 due to collapse of financial markets amid global economic downturn.

The supply of stablecoins in the cryptocurrency market in just the first quarter of 2020 grew by 32.1% from $ 5.7 billion to $ 7.5 billion (+ $ 1.8 billion or + 32%).

According to a report by the CoinGecko service, the main trigger for the increase in emissions was the global uncertainty in the financial markets caused by the coronavirus pandemic, as well as the negative impact from the initial disruption of the OPEC oil deal.+.

The largest increase in supply came from the issuer Tether, whose assets increased by 1.6 billion USDT.

Silence mode

However, despite the increase in supply, cryptocurrency exchanges, according to CoinGecko, did not record much change in total daily trading volume..

This may be an indication that many traders have decided to leave the market, holding stablecoins in their accounts, in order to survive the turbulence of the markets due to the economic crisis..

At the same time, the trading volumes of USDT and trueusd (TUSD) on average exceeded the supply on the market by 5-10 times..

Thus, both stablecoins turned out to be the most liquid among other digital assets that play the role of a virtual analogue of the traditional currency..

Permanent monopolist

That being said, the market cap of USDT is still much higher than that of TUSD (84% vs. 2% dominance).

Stablecoin emission increased to ...

At the same time, paxos (PAX) and usd coin (USDC) stablecoins were approximately equal in capitalization until early March, when USDC suddenly dropped in liquidity.

CoinGecko speculates Black Thursday related the gap.

Earlier we wrote that the collapse of the price of the ether cryptocurrency by almost 45% within a day due to “Black Thursday” became the largest in the history of the Ethereum ecosystem.

We also reported that one of the largest crypto exchanges in terms of trading volume, Binance, has more than 1 billion USDT on its balance sheet (almost 16% of the total capitalization) tether.

No other marketplace has at least half of Binance’s volume.

What do you think? Will such an unprecedented rise in stablecoins affect the price of bitcoin?? Share your thoughts in the comments.


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Stablecoin emission increased to ...

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