Cryptocurrency News Today – Headlines for September 25

  • Stablecoins total value top $20 billion milestones
  • Stablecoin value posted a 300% surge YTD (Year-to-Date)
  • Recent downward price action among tokens like BTC Have Driven stablecoin value

Cryptocurrency News today – recent reports show that the total value of stablecoins has reached a new landmark. The overall value locked in stablecoins has surpassed the $20 billion mark. This hike is a reflection of the growth in demand for investors who want to hedge their risks in the crypto market and the traditional market in the coronavirus outbreak. The data that backed the $20 billion figure for stablecoin value was published by Coin Metrics. This figure was derived on Thursday.

It’s been above four months from the date when this figure broke the $10-billion mark in May 2020. Stablecoins are digital tokens on their own. The value of stablecoins is pegged in fiat currencies like the USD.

Recent Downward Price Action Among Tokens Like Bitcoin Have Driven the Value of Stablecoins

The main trigger behind the most recent increase in stablecoin value is the downward price trend in non-stablecoin digital tokens such as BTC, according to the director of institutional research at crypto analysis company TradeBlock, John Todaro. Todaro wrote in an email:

Because some digital asset exchanges don’t offer fiat pairs, stablecoins remain the available option for traders to transfer risk to fiat-like assets in periods of volatility.”

More traders and users see the so-called stablecoins as an intermediary step before they can decide to put their money in riskier cryptos. After buying the stablecoins with the USD or any other government-issued currency, they can move their stablecoins to exchanges. They can also trade their stablecoin for cryptos like Bitcoin, Ether, and a host of others.

Tether’s Balance On Exchanges Reached ATH in April

According to data given by crypto data site Glassnode, the total balance on exchanges for the most popular stablecoin based on market cap, Tether has hit an all-time high position in April. The increase in the supply of stablecoin also resulted in higher liquidity in crypto trading and crypto transactions in the past week. The surge in the demand for stablecoins may also have been triggered by the heightened interest in the DeFi (decentralized finance) sector.

DeFi users use stablecoins to get high yields from a broad range of DeFi platforms, including Uniswap, Curve, and Aave. Because there is more political uncertainty around the globe, stablecoins are being used by people and corporations to boycott capital controls. They also use stablecoin to bypass other enforcements allowing them to move USD-like assets.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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