Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Editor's Note: This article comes from
Crypto Valley Live (ID: cryptovalley)
, Author: Jamie Redman, translation: Ziming, reproduced by Odaily with authorization.
Stablecoins have seen huge volume growth this month, especially after the massive market disruption on March 12. Typically, Tether has been the king of stablecoins after market downturns, but 4.6 billion USDT is not enough liquidity to weather the storm. Other dollar-pegged coins such as USDC, TUSD and PAX have also gained, some of which have become top trading pairs with BTC.
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Stablecoin Demand Will Grow After Crypto Market Turmoil
As we all know, many traders like stablecoins. When the price of digital currency market suddenly plummets, stablecoins become an effective hedging tool for people. Despite the fact that there are a lot of people who don’t like them and there is a lot of controversy surrounding stablecoins, they have been very popular over the past few years. Tether (USDT) is the most used stablecoin, while the coin’s market cap is by far the highest. USDT/BTC is the most popular trading pair, and USDT accounted for 60%-75% of BTC transaction share last week.
Although Tether has captured 60-75% of the BTC transaction market share in the past few days, the demand for other stablecoins has also grown due to the decline in digital currency prices. Statistics from Cryptocompare.com show that stablecoins such as USDC and PAX have formed the top five trading pairs with BTC. According to Cryptocompare.com, USDC accounts for 4.1% of BTC’s transaction share, while PAX accounts for about 3%.
Typically, these stablecoins do not yet form top trading pairs with BTC. On March 14, Circle co-founder Jeremy Allaire analyzed USDC’s growth over the past few days. “Market demand for USDC has surged over the past few days, bringing new ATH issuance to $568M,” Allaire tweeted. “It’s fascinating that we’re not only seeing a ‘flight to safety’ in the crypto macro market, but also a demand for high-quality USD liquidity.” Allair continued:
“While no one wants to see the crypto market crash, it’s still great to see this new, fully digital, blockchain-based monetary infrastructure in action.”
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Stablecoin Arbitrage and Liquidity
While Allaire discussed the situation in relation to the crypto market chaos on March 12, Paxos Global's official Twitter account tweeted about the various stablecoins they offer custody services, noting that as of March 12, 2020, the combined The total project market value after that exceeds 395 million US dollars. Trading volumes have also increased for TUSD, which has a total market capitalization of around $132 million at press time.
