Crypto data analysis company Coin Metrics reports that stablecoin daily trading volume reached $444 million

Source: CointelegraphChina

Editor’s Note: The original title is “Coin Metrics report shows that stablecoin daily trading volume reached US$444 million”

According to a Coin Metrics report, the circulating market value of stablecoins hit a record high after the cryptocurrency market crash on March 12.

Blockchain analytics firm Coin Metrics found that while Bitcoin (BTC) just experienced its biggest one-day drop in the past seven years, stablecoins benefited greatly from it.

Coin Metrics, which analyzes various aspects of cryptocurrency tokens, released their State of the Network report on March 23. The report looks at how the rest of the crypto market fared during the BTC market crash two weeks ago.

According to data provided by Coin Metrics, stablecoins have gained new market share and the spread between spot and futures markets has widened. As people rushed to deposit and withdraw funds, transfer fees soared. When the market experienced a widespread plunge, cryptocurrency holders may have turned to stablecoins to try to protect their principal from loss.

Many stablecoins see impressive gains after the market crash

According to Cointelegraph, two days after the crash, the market capitalization of stablecoins like Circle’s USD Coin (USDC) hit a new all-time high. The market capitalization of stablecoins usually increases after a sharp drop in the cryptocurrency market.

“Amid the market turmoil, stablecoins’ trading market capitalization hit an all-time high. On March 13, the total trading volume of all stablecoins we tracked reached an all-time high of $444.21 million.”

Other stablecoins also performed unusually. The market value of Tether (USDT-ETH) issued on Ethereum has increased significantly, reaching $3.7 billion as of March 22.

“Due to the dual impact of the shrinking Bitcoin market cap and the large-scale issuance of stablecoins, the percentage of stablecoin market cap to Bitcoin market cap has doubled in a few days.”

Watching Stablecoins Amid Volatile Markets

USDC is the winner of the crash in terms of market capitalization, having gained 57% in the past 30 days. USDC was used as collateral in MakerDAO after the price of DAI rose to $1.06.

The supply of stablecoins began to grow after the coronavirus outbreak began to affect global markets. If the stock market crash on March 12 is any indication of how the coronavirus pandemic is affecting the crypto market, investors may be looking to stablecoins for safe haven purposes.

Original link: https://cointelegraph.cn.com/news/coin-metrics-report-shows-stablecoin-transfer-value-hit-444-million