The blockchain analysis company Coin Metrics issued a new report showing that the stablecoin transfer value has hit $444 million all while Bitcoin (BTC) was experiencing one of its worst drops in history.
The company, which conducts analysis of various aspects of cryptocurrency tokens, recently released their State of the Network report on March 23 in which they elaborated on how the rest of the crypto market fared during the BTC crash from two weeks ago.
As the data from Coin Metrics suggests, the stablecoin transfer value was impressive as these coins gained market share, spreads on spot and futures markets widened. This is how the transfer fees spiked and how people rushed to deposit coins. The crypto holders may have been turning to stablecoins in an attempt to preserve their capital while the market experienced the major downturn.
The cryptocurrency news today also show that stablecoins like Circle’s USD Coin (CUSD) had market caps which reached all-time highs days after the downturn. As you probably know, stablecoin market caps are generally expected to increase after a major crypto market downturn – but this did not happen in this case.
“Stablecoin transfer value hit an all-time high amidst the market turmoil. On March 13th, the aggregated transfer of all stablecoins that we track reached a new all-time high of $444.21M.”
We could see the stablecoin transfer value growing – but also other stablecoins which came out on top. Tether’s USDT, for instance, had a large increase in market cap which reached $3.7 billion on March 22.
“The dual impact of Bitcoin’s USD value halving and massive issuance of stablecoins led to stablecoins’ market cap as a percentage of Bitcoin’s doubling in a matter of days.”
While USDT gained a lot from this, the USD Coin news show that USDC was the winner of the crash in terms of market caps. The stablecoin managed to record a 57% increase over the last thirty days and is currently being used as collateral on the MakerDAO network after the price of their own decentralized stablecoin Dai (DAI) increased to $1.06.
The coronavirus definitely shook many things on the markets and started affecting the stablecoin markets, too. The good news, however, is that the supply of stablecoins began growing and investors may be flocking to them to provide stability.
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