Value of All Stablecoins in Circulation Surpasses $9 Billion
April 22, 2020 – The value of all stablecoins currently in circulation has surpassed $9 billion. This $3 billion than what it was just in early March 2020, when the value of all stablecoins is worth $6 billion.
The data comes from Coin Metrics, which tracks coins in circulation.
Many are suggesting that the increase in the stablecoin circulation is a catalyst for an upsurge of bitcoin price in the future. There was a previous research stating that there’s a surge in Bitcoin price most of the time when Tether prints USDT.
As reported by Bitcoinist, however, this rapid surge in stablecoins is not 100% bullish for crypto. The increasing stock of USDT may be attributed to 3 factors:
- Over-the-counter traders from Asia that are looking to acquire USDT.
- People selling crypto-assets for USDT to hedge positions
- People selling crypto-assets for USDT to reduce risk
However, Ryan Selkis of Messari explained that the fact that stablecoins are largely on exchanges highly implies that investors “are willing to buy back into Bitcoin, eventually.” He also said if investors want to cash out of crypto completely, they would have withdrawn funds to banks already.
There's now $3 billion++ of stablecoins sitting on exchanges.
If investors wanted to cash out of crypto completely, they would have withdrawn funds to banks.
Instead, we've got more dry powder held in the crypto economy than ever before.
In both real and market cap % terms. pic.twitter.com/rCEYNqcMY0
— Ryan Selkis (@twobitidiot) April 17, 2020
Source: Bitcoinist, Ryan Selkis on Twitter, Coin Metrics
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