A new report is in the latest crypto news, showing that the USD Coin volume collapsed in May despite the positive market and all the growth in it. As the crypto market resumes growing by all measures, we can see that the USDC stablecoin saw its Bitcoin trading volume plummeting by 78%.
A June 5 report shared by BitMEX Research shows that there is a positive trend in cryptocurrency exchange volumes which began in 2020. However, the USD Coin volume shows that the market share plummeted in May.
In the report, we can also see the exchange volume trends in 2020 where both spot and derivatives are taken into account. As we previously reported in our USD Coin news, the derivatives and especially options for this stablecoin gained positive market share in recent months.
Data even shows that spot trading volumes saw a strong uptick starting from January 2020.
Volume on “top tier exchanges” almost doubled in January and we can see that as USD Coin volume collapsed, many analysts are worried.
March saw the highest volume yet in 2020, mainly due to the extreme volatility event of Black Thursday. April saw a sharp decrease, which is likely spurred by the ongoing uncertainty resulting from the Coronavirus pandemic.
In May, we could see how the markets resumed growth in terms of price and volume, as Bitcoin (BTC) touched the $10,000 mark on multiple occasions.
Meanwhile, we can see that while the market as a whole is recovering, USD Coin’s trading volumes with Bitcoin plummeted after hitting a major peak in February. As highlighted by CryptoCopare, both the USDC and Paxos (PAX) suffered a spectacular collapse in the BTC volume in just one month.
“BTC/USDC and BTC/PAX markets traded 0.18mn BTC (down 78%) and 0.03mn BTC (down 97%) respectively in May.”
USDC is the second biggest stablecoin by market capitalization and is a joint project between Coinbase and Circle. While this is one of the most used stablecoins in Ethereum decentralized finance, the fact that the USD Coin volume is dropping can be a sign of warning for what is about to come in the near future.
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