- Stablecoins transfer value reaches $444 million
- A lot of stablecoins made notable gains
- Investors have looked to stablecoins for stability
Cryptocurrency News Today – According to reports, Blockchain analysis firm Coin Metrics revealed that stablecoins have posted more gains in recent days. The firm found that while the largest digital asset Bitcoin was experiencing what can be described as its biggest daily drop in seven years, stablecoins, on the other hand, have been in the green zone.
Coin Metrics analyzed different aspects of crypto tokens before releasing their reports. This time, their State of the Network report was posted on March 23 and it was focused on devising ways in which the altcoins in the crypto market have performed since the last BTC crash from two weeks back.
Stablecoins Gained Market Share
According to data provided by Coin Metrics, stablecoins gained in terms of market share. The futures markets were widened, and all transfer fees rose as people were quick to deposit their tokens. It is believed that crypto holders might have turned to stablecoins to preserve their capital as the market experienced a big downturn at the time.
Stablecoins like Circle’s USDC had their market caps post new all-time highs just two days after the market downturn. The stablecoin market caps are not always expected to rise after a crypto market downturn. However, this was not the case. Here is how the original report puts it:
“The transfer value of stablecoins hit an all-time high after the market turmoil. As of March 13, the overall transfer of stablecoins reached an all-time high of $444.21 million.”
Other stablecoins came out on top as well. USDT-ETH (Tether issued on Ethereum) posted a large increase in its overall market cap, which reached $3.7 billion on March 22. Here is more:
“The dual effect of Bitcoin’s value halving and the high issuance of stablecoins caused the stablecoins’ market capitalization to rise in days.”
How Stablecoins Have Performed in the Volatile Market
Among the stablecoins that did well, USDC stands tall. This stablecoin is the winner of the crash when it comes to overall market capitalization having posted a 57% increase in the past 30 days. The stablecoin is now being used as a collateral on the MakerDAO after the price of Dai increased to the $1.06 area. After the coronavirus outbreak began to affect global traditional and cryptocurrency markets, stablecoin supplies began to grow. If the BTC crash on March 12 was any indication of how the pandemic is affecting crypto markets, then investors may be looking up to stablecoins to gain some form of stability.