The purchases of stablecoins are probably one of the most positive things in the digital currency news. Our analysis today shows that they have recorded an increase during the market crackdown. As we saw the crypto market taking a beating and Bitcoin going even below $5,500, it seems like there were assets which also benefited from the buyers.
Certain stablecoins like USD-C, TUSD and DAI each witnessed increases of more than 200% in their 24 hour trading volume (even despite the market sell-off) as traders flocked to what they may have perceived to be safer alternatives in an attempt to escape market volatility.
This surge is not much surprising given the fact that the main use of stablecoins is to provide cryptocurrency users with the ability to convert volatile crypto positions into anti-fragile, ‘stable’ alternatives.
Tether (USDT), has ruled the roost during this increase. However, the market is now full of stablecoins aside from the pioneer (Tether) and now also includes competitors like USD-C, PAX and GUSD to name a few.
As data shows, Tether’s USD stablecoin is actually second on the list of growth during its 24-hour trading volume. The stablecoin that leads is USD Coin (USD-C) which is the regulated stablecoin backed by blockchain startups Circle and Coinbase, which witnessed the most notable uptick amid the market rout.
The volume of USD-C surged nearly 400% in 24 hours, from just over $5 million on November 14th to more than $25 million by the next day, representing its highest level of volume in the 24-hour window.
As recent data shows, USD-C is still the ‘king’ when it comes to daily trading volume. However, Tether (USDT) is still holding its ground on that front with its presence on 400 cryptocurrency markets.
BUSD By Binance Launched: Meet The New USD-Backed Stablecoin
‘’Paxos is leading the digital trusts space and we are excited to work with them in developing our native stablecoin.’’The Paxos co-founder and CEO Rich Teo pointed out:
‘’NYDFS’s approval of BUSD is a vital step towards long term stability in global crypto markets. We are proud that our stablecoin as a service offering enables trusted companies like Binance to introduce products customized for their users.’’The news comes as an earlier announcement that Binance will launch a subsidiary called Binance US meant for the traders in the United States. In the second half of 2019, the exchange should expect some more developments since in July Binance opened the doors for margin trading services allowing users to place the leveraged orders. The largest cryptocurrency also revealed the plans to create Venus which is a ‘’regional version’’ of Facebook’s Libra in order to establish financial hegemony. As per the reports in the best cryptocurrency news sites, Binance launched a platform that allows the traders to lend their BNB, ETC, and USDT and to also receive a certain annualized interest rate.
Third Audit Attestation Of USDC Stablecoin Reserves Released By Circle
“As of the Report Date and Time, the issued and outstanding USDC tokens do not exceed the balance of the US Dollars held in custody accounts.”USDC is a stablecoin that is based on the Ethereum (ETH) ERC20 token which was first announced in May 2018 after Circle successfully raised $110 million from investors. The CEO of Circe Jeremy Allaire explained more about USDC by saying:
“It’s a version of fiat that can move at the speed of the Internet with global reach, with much less cost, with high levels of security. It’s a huge improvement for how fiat money transmission can work around the world for consumers and for businesses who might want to collect digital payment with tokens.”Circle’s third audit attestation on the stablecoin, shows that the company has a surplus of US dollar reserves that are able to back the circulating coins. The first one was published in November 2018. Also, back in December, the USDC stablecoin was added to one of the largest crypto exchanges in the world-Binance after getting listed on Huobi and OKEx both in October.
Circle’s USDC Stablecoin Officially Launches On The Coinbase Platform
“We are issuing stablecoins backed 1:1 with the U.S. dollar, completely audited, completely transparent. We think this is a key step toward unlocking innovation in crypto.”For those who don't know the concept of a stablecoin, it is basically a digital currency that is tied to another stable currency like the US dollar - primarily designed to minimize price volatility. Its value is based on the value of the backing fiat currency which is held by a third party which is a regulated financial entity.
Circle Officially Launched A USD-Pegged Cryptocurrency Named USD Coin (USDC)
“When we founded Circle five years ago, we and many in the crypto community envisioned fiat money and financial contracts executing on top of distributed public network infrastructure, building on open standards that would allow us all to share value as instantly and easily as we can access content in web browsers and exchange messages in email and messaging apps. Just as HTTPS, SMTP and SIP enabled free borderless information sharing and communications, crypto assets and blockchain technology will enable us to exchange value and transact with one another in a similar way: instantly, globally, securely and at low cost.”However, this is not the first time the market is hearing about Circle's stablecoin. USDC was previewed back in May this year, in tandem with the announcement that the company (Circle) achieved a $3 billion valuation following the Series E funding led by the Bitcoin mining giant Bitmain. Unlike most of the other USD-backed stablecoins, Circle will not be the only issuer of USD Coin. Instead, the token will have multiple users in the future - as more organizations join CENTRE, which is an open-source consortium launched to develop a decentralized network of fiat stablecoins.
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