Stablecoins Clearly Explained – Earning Interest, Different Types & Taking Profits


Stablecoins are used in the midst of Asian and European trading sessions – research

  • USDT is mostly used during Asian trading sessions.

  • Almost all stablecoins except DAI were active during the Asian trading session.

  • The number of Ethereum-based assets has been growing steadily lately.

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According to a study by Coin Metrics, the largest stablecoin by capitalization, stablecoins – literally translated from English “stable” coins – continue to gain popularity in the digital asset market..

Stablecoins are used in the midst of ...


Stablecoins are used in the midst of ...

More is especially popular in Asia and Europe.

The market capitalization of stablecoins has nearly doubled since Black Thursday, despite the fall in most highly volatile assets. Recently, for example, the total market capitalization of stablecoins has grown to more than $ 10 billion..

The analytical resource Coin Metrics conducted a study to find out when stablecoins are mainly used and what drives the rise in popularity.

Stablecoins are used in the midst of ...

The main stablecoins were those deployed on the Ethereum blockchain..

The market is ruled by China

So, according to the published results, it becomes clear that the leading stablecoin Tether has a clear pattern of heavy use from 05:00 to 19:00 Moscow time, which corresponds to the hours when the Asian and European stock markets are open. The turnover activity falls towards the end of the day.

Paxos Standard (PAX) stablecoin turnover has also surged sharply since March 12. In fact, daily PAX transfers have tripled since March 12 and reached a new all-time high on May 5 of 24,400 transactions.

Thus, PAX bypassed USDC and DAI in terms of daily transfers..

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In the case of USD Coin (USDC), the picture is somewhat different. So, after March 12, the activity of transfers increased from 04:00 to 11:00 Moscow time, which corresponds to the hours of the Asian trading session.

The only stablecoin that matched the American trading session was Multi-collateral DAI (DAI). Its main hours were between 21:00 and 05:00 Moscow time..

Burst of activity

A notable fact was that in April the USDC had several days, when about 20% of daily transfers took place in just one hour..

Other stablecoins, according to Coin Metrics, did not have more than 12% of daily transfers within one hour.

Thus, Coin Metrics came to the conclusion that although different stablecoins are used for different purposes and are popular in different parts of the world, most of the activity was recorded in the Asian and European markets..

What do you think? Is the stablecoin market really ruled by China or is trading conducted by American whales through Asian intermediaries?? Share your thoughts in the comments.


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