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DAI Review: Why It’s The BEST Stablecoin!

$ 7 billion worth of stablecoins are biding their time ...

$ 7 billion worth of stablecoins are biding their time to enter the crypto market
CONTENT

  • Amid widespread chaos, the stableblock market continues to show strong growth.

  • Traders are leaving BTC, ETH and other cryptocurrencies en masse, but they do not want to leave the crypto market.

  • It is not yet clear when assets parked in stablecoins will return to the market.

International consortium of news organizations developing transparency standards.

The volume of assets parked in stablecoins has significantly increased in the cryptocurrency market lately. This indicates strong investor indecision..

There is a high level of volatility and uncertainty in the global markets, and it covered not only stocks and commodities, but also the cryptocurrency market. Against this background, there is a tangible inflow of capital into stablecoins, which is evidence of great doubts and indecision among investors..

$ 7 billion worth of stablecoins are biding their time ...

The total market capitalization of all stablecoins recently reached a new all-time high, exceeding the $ 7 billion mark. It is important to note that the figure has been actively growing recently. This may serve as an indication that investors were exiting positions on the volatile and disappointing Bitcoin, Ethereum and other cryptocurrencies – however, they still were not ready to completely say goodbye to the crypto market..

Economy is sinking – stablecoins are getting stronger

The last weeks have been tough for traders, no matter what they trade. World stocks, oil, gold, bitcoin – all assets were tossed like a roller coaster as the devastating effects of the coronavirus pandemic on the global economy became more evident.

Meanwhile, amid all this chaos, one market segment continued to demonstrate not only resilience, but also growth. Stablecoins such as USDT, USDC and TUSD have begun to gain more investor attention as digital assets created to maintain sustainable value.

As a relatively young phenomenon in the crypto industry, they quickly gained popularity among traders who want to withdraw their funds from the often volatile bitcoins and other cryptocurrencies, but still not leave the crypto market. Stablecoins were seen by players as an island of stability due to their peg to more traditional currencies and assets..

At the end of 2017, the capitalization of the stablecoin market did not reach $ 1 billion.By mid-2018, this figure exceeded $ 3 billion.At the end of January this year, the BeInCrypto editorial staff reported that at the time of writing, about $ 6 billion were placed in all stablecoins in total, awaiting a signal to enter the market.

Over $ 7 billion at a low start

Since then, this figure has grown significantly again. At the moment, massive panic in the global markets has further strengthened the position of stablecoins. They are increasingly becoming the currency of choice compared to other cryptocurrencies..

As the analytical resource Bloqport (@Bloqport) recently reported, in the last month alone, the stablecoin market grew by an impressive $ 1.5 billion. Bloqport was optimistic about these numbers, believing that investors are simply waiting for a convenient moment to enter the crypto market. Then a sharp inflow of capital into Bitcoin and other cryptocurrencies will lead to their active growth..

$ 7 billion worth of stablecoins are biding their time ...

DATA: There is over $ 7 billion in stable coins sat on exchanges, up $ 1.5 billion in the last month.

A lot of money on the sidelines waiting for the right moment to jump back into crypto markets and for #Bitcoin to bottom. There could be strong bullish pressure ahead. pic.twitter.com/11QcC5ias6

– Bloqport (@Bloqport) March 27, 2020

However, while the fear index in the market is at extreme values, such a rally should not be expected. Moreover, at the moment, such an increase in the capitalization of the stablecoin market only suggests that players are using stablecoins as a hedging tool against the cryptocurrency market itself..

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