The turmoil the cryptocurrency market has been facing over the last few months is no secret. Prices of all cryptocurrencies have been falling significantly against the USD. Bitcoin (BTC), last week, reached a yearly low of about $3200. While some analysts claim this was the bottom, some others believe that this is just the beginning. Another group of speculators believe that the industry has met an untimely end. As expected, the price of other cryptocurrencies have been moving in line with the price of BTC. The market capitalization of all cryptocurrencies has fallen by over 60% from its all time high. With no sign of a recovery in view, it’s safe to say that the bears might remain in control of the market until next year.
It’s Not All Bad News
Even if there is a lot of negative vibe in the market at this time, stablecoins are benefiting. Reports from Diar, a research firm, showed that stablecoins are recording a tremendous increase in adoption. Apparently, the increase in the number of on-chain transactions is what has directly influenced the level of adoption for stablecoins.
The report states that stablecoins like PAX, TUSD, USDC, GUSD have crossed the $5 billion mark in the number of on-chain transactions within just three months. In November alone, there was a 1032% increase in the number of on-chain transactions compared to the month before. This happened after the market crossed the $2.6 billion mark.
Going further, the report states that the Ethereum blockchain recorded PAX transactions worth $1.8 billion within the last three months. This is twice the number of USDC coins developed by Circle and Coinbase. It’s no wonder exchanges have been adding stablecoins to their platforms. Not too long ago, Bitfinex and Ethfinex added GUSD, PAX, USDC, and TUSD. This is in addition to DAI, an Ethereum-based stablecoin and Tether (USDT) the leading stablecoin in the market.
What Else Is New In The Stablecoin Market?
The number one cryptocurrency exchange in the world per market capitalization, Binance, recently renamed its Tether Market making it a combined Stablecoin Market (USDⓈ). This allows the exchange to offer support for other trading pairs of stablecoins. The move was made just after the exchange announced support for USDC, PAX and TUSD.
Last Week, Li Xiaolai, a Chinese cryptocurrency investor announced that he would be leading a new stablecoin project along with Grandshores Technology, a Hong Kong-based blockchain fund. This stablecoin will be a stable digital currency system that will focus on mainstream currencies on a global scale.
Price Analysis For Tether (USDT), PAX And USDC
At the time of writing, the leading stablecoin in the market, USDT was trading at $1.01. It was down by -0.55% against the USD and up by 3.62% against Bitcoin. The 24 hour trading volume is $3,114,404,611 and the market capitalization is $1,874,851,604.
PAX is also trading at $1.01. This shows that it is down by 0.30% against the USD and up by 3.61% against Bitcoin. Against ETH, it is up by 4.86%. The trading volume over a 24 hour period is $56,474,717 with a market capitalization of $172,524,436.
On the other hand, USDC is trading at $1.02. It’s up by 0.31% against the USD and up by 4.37% BTC. Against ETH, it is up by 5.40%. The trading volume over a 24 hour period is $13,655,178 and the market capitalization is $194,206,334.