Coin Metrics Data Demonstrates Stablecoins Performance
A recent analysis by Coin Metrics reports that on one hand, the Bitcoin has been experiencing the biggest fall and on the other hand, the Stable Coins is obtaining the benefits.
On March 23, 2020, the Coin Metrics released its State of Network report regarding crypto market’s performance when the BTC starts colliding. The Coin Metrics data stated that as the market is experiencing a downfall, therefore, most of the crypto investors are now choosing to invest in stablecoins to could save their capital.
USDC New RecordAccording to a report, a few days after the market experienced a downturn, the Circle’s USD Coin (USDC), which is a stablecoin, market capital goes up with a new all-time high record. Usually, after a major fall in the crypto market, the stablecoins market capital is increased but that did not happen with USDC.
The Coin Metrics Data mentioned, “Stablecoin transfer value hit an all-time high amidst the market turmoil. On March 13th, the aggregated transfer of all stablecoins that we track reached a new all-time high of $444.21M.” The report suggested that the market capitalization of some other stablecoins like Tether also went up.
The market capitalization of Tether which is issued on Ethereum (USDT-ETH) increased after the market downfall and reached $3.7 billion.
MakerDAO Uses USDC As CollateralThe report further says that during the time of the crash the market capitalization of USDC increased by 57 percent and it became the winner. Currently, the MakerDAO is using the stablecoin as its collateral. The report adds that after the crash the price of DAI, the decentralized stablecoin of MakerDAO, also increased to $1.06 and the firm is using it (stablecoin) as the company’s primary stablecoin.
The reason for an increasing market capitalization of stablecoin is the outbreak of Coronavirus. Although the pandemic has affected every market in the present time, the stablecoins value is rising, because the investors are heading towards it to get some stability.
You May Also Read.
- Amidst Market Downturn Stablecoins Booms
- Stablecoins Can Hedge The Risks Of Uncertain Volatile Crypto Market
- List Of Stable Cryptocurrencies Till Date
About The Author
Jyoti SinghGraduated from GGSIPU and did PG Diploma in English Journalism from IIMC. Last worked at Business News and Information Services Ltd. for more than one and a half years as a sub-editor.
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