BNB research shows the new report with a partial focus on stablecoins and the results of the survey show that there is a huge stablecoin adoption: all but 4% percent of respondents are using the least one stablecoin as we are seeing today in the coming altcoin news.
The BNB research shows the institutional investors are keen on stablecoins but they don’t comment how stablecoins are being used. The dollar-pegged stable coins are typically used as a very cheap and fast alternative to fiat withdrawals and deposits on exchanges. Binance only collected the stablecoin data from about 69 percent of its client so the results do not paint a very clear picture. However, the survey size is much larger than the previous efforts of the exchange and it does give some more insight into the market.
Other stablecoins do have a following as well. The USD coin has an adoption rate of 19 percent while TrueUSD and Paxos reached 13 percent. MakerDAO, StableUSD, Binance USD and Gemini USD all have adoption rates of six percent or less. Binance suggested that the exchange-backed stablecoins such as USDCoin and Binance USD sparked more interest for the investors that the fiat-backed stablecoins.
With the low adoption rate of Binance USD’s the claim is not entirely supported by the data. Binance observed that 4% of the respondents are concerned about Tether’s legal issues since Tether remains the go-to stablecoin but raises questions from many market participants on whether the ‘’emperor has clothes.’’
Binance also found that the high-capitalization stablecoins always attract more adoption: “Putting the broader results in line…the overall use for each stablecoin is roughly in line with the rank of its respective market capitalization,” according to the researchers. The findings could temper some criticism toward the stablecoin issues who are accused of minting the tokens in order to artificially drive up the market cap.
Tether, for example, increased from a $2 billion capitalization in January to above $4 billion in November. If Binance’s data represents the larger market, the stablecoin growth could be a part of the real demand. The adoption rate and capitalization are not proportional since Tether has twice the adoption rate of USDcoin but nine times of its circulating supply.
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