The market cap of Tether’s USDT stablecoin has surpassed the $6 billion mark as investors are holding onto stablecoins while waiting for the market to recover.
According to a report published by Coin Metrics, the issuance of stablecoins has increased after the March 12- 13 crypto market crash that saw the price of bitcoin drop from a $7,100 high to about $3,800 in a two-day period, before it bounced back to over $6,000.
Most stablecoins have managed to maintain their peg with one exception. DAI, the stablecoin issued by MakerDAO. After the price of ether plummeted, DAI started trading within the $1.02 to $1.06 range, even though Maker has auctioned MKR tokens to cover undercapitalized debt created at the time.
The report further noted that users are accumulating across cryptocurrency exchanges USDT and USDC stablecoins. Data even suggests that the stablecoin balance on crypto exchanges has surpassed $1 billion as users accumulate. Presumably, investors are accumulating stablecoins on exchanges like Binance ,Poloniex, and KuCoin while waiting for the right time to enter the market.
As demand grows more stablecoins are being issued. Tether’s USDt surpassed the $6 billion market cap, with most of the funds – $4.3 billion – circulating on the Ethereum blockchain. On TRON there are $700 million worth of USDt in circulation, while on Omni there are $1.5 billion. The remaining tokens are spread among various other blockchains.
USDT market cap grinding higher in the last week to $6bln+ pic.twitter.com/jtxEKzlbmg
— skew (@skewdotcom) March 31, 2020
It wasn’t the only stablecoin to see its market cap swell. As CryptoGlobe reported, the market cap of Circle’s USDC surpassed the $600 million market cap shortly after the market crash, adding over $100 million in a week.
Binance’s BUSDT stablecoin saw its market cap triple since the beginning of March, from $68 million to $181 million. Huobi’s HUSD nearly doubled, from $78 million to $136 million during the same period. Meanwhile regulated stablecoin PAX saw its market cap grow from $191 million at the beginning of March to $246 million.
Demand for gold-backed cryptocurrencies has also been on the rise, with Tether’s XAUt leading by market cap. As reported, cryptocurrencies’ features have been shining as the gold market is currently facing an unprecedented stress test.
Featured image via Pixabay.