Editor's Note: This article comes fromHoneycomb Finance News (ID: fengchao-caijing), Author: JX kin, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Honeycomb Finance News (ID: fengchao-caijing)
Honeycomb Finance News (ID: fengchao-caijing)
, Author: JX kin, reproduced by Odaily with authorization.
USDT has been issued again. The latest occurred on March 30, and the number was 120 million.
Its issuing company, Tether, known as the "Federal Reserve" in the currency world, opened the gates after the "3.12" currency market crash, flooding the flood with nearly 1.3 billion additional USDTs, reducing its market value of 6.15 billion US dollars. Pushed to the fourth place in the world, dominating the throne of stable currency.
The sharp drop in the currency market on March 12 led to a sharp increase in the demand for stablecoins. The market no longer cares about whether there is an equivalent reserve behind USDT. The demand for hedging and deposits flocks to USDT, resulting in a premium of over 10%.
After 2018, the number of stablecoins entering the market with compliance advantages has continued to increase, but whether it is USDC, HUSD, BUSD, USDK supported by exchanges, or decentralized DAI, they cannot shake the status of USDT.
The first appearance, wide circulation, and market habits are the exclusive advantages of USDT, and the "relevant" stablecoins with exchange barriers are subject to themselves. Therefore, they had to work slowly, seeking breakthroughs in partners and usage scenarios.
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Demand stimulates USDT to issue 1.3 billion more in 18 days
According to WhaleAlert data, on March 30, Beijing time, Tether issued another 120 million USDT on Ethereum. Additional issuances of this magnitude have occurred 3 times in the previous 6 days. Tether has changed from the previous style of issuing a maximum of 60 million, simply Double, 120 million each time.
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The total amount of USDT issued based on Ethereum has reached 4.2 billion
Tether's frequent additional issuance began on March 12. According to data, in the 18 days after that day, the company issued at least 19 additional USDTs, amounting to nearly 1.3 billion.
The USDT anchored to the U.S. dollar is like a capital channel to enter the cryptocurrency market. Tether is therefore known as the "Federal Reserve" in the currency world. .
Of course, the U.S. dollar is backed by the U.S. government, and behind USDT is Tether, whose reserves are unknown and have been targeted by regulation. The sharp drop on March 12 brought an opportunity for Tether to start the "money printing machine".
The panic in the currency market driven by the Bitcoin waterfall has caused investors to put risk aversion first. The best choice is to exchange risky assets for USDT and other stablecoins.
Two weeks after the sharp drop, the market has gradually stabilized, but Tether has not stopped "printing money". There have been four additional issuances of 120 million levels. According to the analysis of the relevant person in charge of OKLink, the market fell sharply on March 12, and the encrypted asset market, including BTC and ETH, experienced a "deleveraging situation", which led to a shortage of cash flow at the level of miners, lending customers and traders. . At this stage, the panic market is basically lifted, so more users will want to use USDT to enter the market for a series of spot and derivative transactions.
Demand is the best reason for Tether to issue additional USDT. On April 1, the latest data from Cryptoslate showed that the market value of USDT was 6.15 billion U.S. dollars, and nearly 1.3 billion additional issuances made USDT the fourth largest cryptocurrency market value in the world, after BTC, ETH, and XRP.
The news of additional issuance of USDT will always spread in some cryptocurrency enthusiast communities, and every time it will cause a new round of reminders from cautious players, "USDT is increasing leverage for itself again, be careful of thunderstorms." But who will really Do you care about this reminder?
After all, the doubts about Tether’s unidentified reserves have been going on for several years, and the New York prosecutor’s investigation of it has not yet ended. Even half a month ago, the price of USDT once reached 8 yuan in OTC transactions outside the market. , The premium rate of more than 10% did not prevent investors in the currency circle from using it to hedge.
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39 stablecoins account for 20% of the market
Under the light of USDT, the king of stablecoins, the actions of other altcoins appear bleak.
In fact, when the demand for safe-haven surged, other stablecoins also saw additional issuance. Stable Universal stated that in March, the circulation of HUSD rose by 74.7%, a growth rate far exceeding that of other compliant stablecoins. CoinMetrics data shows that in the past month, USDC has increased by 55.4%, and PAX has increased by 26.5%.
In the world of stablecoins, in addition to stablecoins issued by regulated trust companies such as PAX, exchanges are also an important force in the field of stablecoins. Even the growth of USDT cannot be separated from the promotion of the Bitfinex exchange.
In the stablecoin market capitalization rankings, behind USDC, BUSD, USDK, and HUSD, there are backgrounds of leading exchanges such as Coinbase, Binance, OK, and Huobi respectively. These "relevant" stablecoins are the products of cooperation between exchanges and qualified trust or asset management companies, and have entered the market one after another after 2018.
Compared with USDT, the biggest advantage of exchange-based stablecoins is compliance: they have regulated company operations and management, are approved by regulatory agencies, have legal reserve accounts, and audit institutions regularly approve circulation and reserve funds. suitability.
Even so, two years later, the stablecoins supported by these top trading platforms still cannot shake the status of USDT.
The total market value of the 40 stablecoins included in Cryptoslate is 7.7 billion US dollars, and USDT alone occupies 80% of the market share, and the other 39 types only get 20% of the total. On the stablecoin market value ranking list, the second-ranked USDC market value is only 683 million US dollars, which is 11% of the USDT market value.
The turmoil in the market has stimulated the demand for stablecoins. Although it has also promoted the increment of some currencies, the demand seems to favor USDT.
USDT, which entered the market as early as 2014, firmly controls its first-mover advantage. In less than 6 years, it has flocked to the shelves of hundreds of exchanges. Especially when the cryptocurrency market exploded in 2017, a crop of exchanges sprung up like mushrooms after rain, and spot trading became popular. Any exchange that appeared on the market must have USDT trading pairs.
On the other hand, the exchange-based stablecoins that appeared after 2018 must be the first to land on the currency trading and OTC of their respective main websites, and the pace of spreading outside the stations is very slow.
In terms of BTC, on the same exchange, the transaction volume of the stable currency pair supported by this exchange is far less than that of the USDT currency pair. For example, at 5 a.m. on April 1, the 24-hour turnover of Binance’s BTC/USDT was $549 million; the 24-hour turnover of BTC/BUSD was only $26.11 million.
In OKEx’s fiat currency trading zone, there are 10 USDK merchants and more than 100 USDT merchants. On Huobi Global, there are 15 trading pairs for HUSD and more than 110 trading pairs for USDT.
The above four "relevant" stablecoins, whether it is the number of corresponding encrypted assets, transaction volume, or the number of exchanges logged in, are far less extensive than USDT.
The stablecoins supported by the exchanges are often limited by competition barriers. Simply put, the USDK supported by OK will not be listed on Huobi, and the BUSD supported by Binance will naturally be difficult to go to other major platforms. This invisibly limits the outward expansion of the "tethered" stablecoins.
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Exchange Stablecoin Assault Usage Scenarios
USDT, which dominates the stablecoin throne, is still running rampant in the market despite its many risks and has been widely criticized.
Compliant stablecoins with regulatory scrutiny will inevitably not be able to issue more unscrupulously like USDT, so they need to find some other ways to expand their market share.
Compared with decentralized stablecoins, stablecoins supported by centralized exchanges have deeper funds, resource strength and a wider range of users.
The "relevant" stablecoins are expanding the entrance and usage scenarios of traffic in a cooperative way, including wallets, payments and open financial DeFi.
Stable Universal, the operating team of HUSD, introduced to Honeycomb Finance that HUSD has received support from centralized and decentralized exchanges and flash exchange platforms such as Huobi Korea, FTX, Tokenlon, and SWFT; in addition, HUSD has also extended its functions to the payment field, through In cooperation with Alchemy, users can already use HUSD to shop in some shopping malls in Singapore, Hong Kong, Dubai and others.
