Rising Stablecoin Chatter - Bullish for Cryptos?
The Cryptocurrency market at large continues to tread water, but underlying mentions for stablecoins suggests that individual investors are still active.
“Stablecoins” are digital currencies which have their value fixed to an underlying asset.
The three largest stablecoins, Tether (USDT-USD), USD Coin (USDC-USD), and Binance USD (BUSD-USD), all have their price “pegged” to $1 USD.
Together these coins command a market cap of nearly $100 billion and their combined cashtag chatter is surging: +34% in the past month, +50% QoQ and +126% YoY (7-day moving average)
Stablecoins protect investors from the notorious price volatility of the cryptocurrency market, while still serving as "dry powder" for crypto-to-crypto transactions on exchanges.
Although they aren't without regulatory risk (link needed), these USD analogs represent a large amount of sidelined liquidity.