[ad_1]
On Wednesday, the crypto market took a bad turn when it lost nearly $ 30 billion in total market capitalization – but not all businesses struggled to find buyers.
Indeed, some stablecoins such as USD-C, TUSD and DAI witnessed an increase of more than 200 percent of the 24-hour trading volume amid a broader market sell-off as traders clashed to what they could perceive as safer alternatives in an effort to escape market volatility.
The increase in the volume of stablecoin exchanges is not exactly surprising, given that their main use case is to provide cryptocurrency users with the possibility of converting volatile cryptographic positions into anti-fragile or "stable" alternatives.
Due to regulatory constraints, USD or other legal currencies are not readily available on most exchanges, thus leaving the stablecoin as an option.
For much of the history of the cryptocurrency market, a stablecoin – Tether (USDT) – dominated the roost, but last year welcomed many other competitors like USD-C, PAX and GUSD, just to name a few.
Bitcoin's break of the psychological support level of $ 6,000 on November 14 was enough to shock the broader risk aversion of the market, which proved to be the ultimate test for the young stablecoin who revealed that they are becoming more preferred, especially during periods of extreme market volatility.
The best performers
The graph below depicts the increase in the 24-hour trade volume of the six largest USD-based stablecoins for market capitalization since before the market dump, at the beginning of November 14, after November 15 .
USD Coin (USD-C), the regulated stablecoin supported by the Circle and Coinbase blockchain start-ups, is the newest of the group, but has witnessed the most notable uptick in the market.
USD-C 24-hour trading volume rose nearly 400% from just over $ 5 million on November 14 morning to more than $ 25 million by the next day, accounting for the highest volume level in one window open up to 24 hours.
The performance of the token also pushed the world's 50 largest cryptocurrencies by market capitalization, according to CoinMarketCap.
It is also worth noting that the largest exchange of cryptocurrencies for adjusted volume, Binance, has announced that this week will be quoted USD-C, so short-term availability could be a factor that will make it a more attractive option for buyers.
The worst performer of the group in terms of 24-hour volume increase was the Paxos Standard Dollar (PAX). That said, PAX's volume increased 50% from $ 45 million to $ 75 million within the time period.
The Gemini Dollar (GUSD) recorded the lowest trading volume over a period of time, with a trade flow of $ 2 million and $ 3.5 million on November 14 and 15, respectively.
The USDT is still the king
Although Tether was only the 4th best performer in terms of percentage increase in volume, its share of the volume of trade in the market of the six salaries on the stock exchange remained essentially unchanged between the beginning and the conclusion of the sell-off of this week.
These changes to the market share are reflected in the following table:
According to CoinMarketCap data, the 24-hour USDT volume was 97% of the $ 2.6 billion stablecoin volume on November 14.
In addition, USDT maintained its position on this front, seeing 96.9% of that volume the next day, when the total rose more than 100% to $ 5.5 billion.
The tether has even started to lose the dollar parity during the market sell-off, falling to $ 0.95 on the Kraken stock exchange, but the closest competitor to the USD in terms of volume market share was PAX, equal to only 1% of the total stablecoin volume on November 15th.
The CoinMarketCap data also reveals that USDT is tradable on 400 cryptocurrency markets while PAX is only available on 35, so with this measure, it is not exactly a fair fight when considering the overall USDT flow.
Revelation: The author retains BTC, AST, REQ, OMG, FUEL, 1st and AMP at the time of writing.
Image of the balloons through Shutterstock; data graph via CoinMarketCap
[ad_2]Source link
