In the context of the very exciting cryptocurrency market, capital inflows into USDT continue to grow. According to the latest updates, the largest stablecoin in the cryptocurrency market has capitalized in excess of $ 11 billion.
With stablecoin demand increasing, Tether’s market capitalization (USDT) has reached $ 11 billion, an increase of 136% since the beginning of 2020.
Because USDT-BTC is one of the most liquid and most economical cryptocurrency pairs to buy BTC, Bitcoin capital flows are pouring heavily into all exchanges during the month, according to data from Chainalysis.
What are stablecoins?
Stablecoins, which are tokens tied to a fiat currency such as US dollars, are used as a bridge for users to access cryptocurrency transactions. If an investor wants to buy cryptocurrencies, they can buy stablecoins first, as the name of this currency, the value of tokens like USDT is very less volatile, meaning that users can easily more control over your investments, instead of constantly having to calculate value fluctuations like BTC or ETH
On the contrary, if an investor wants to take profits but does not want to withdraw money from the market, then stablecoin can completely solve that demand with a very reasonable cost.
Market volatility drives demand for stablecoins
Over the past year, the total supply of the stablecoin market has doubled, to approximately $ 12 billion, largely because investors all tasted bitter fruits in March and cash flow has poured into shelters. It’s safe to invest, according to research from Coin Metrics. For ease of comparison, it was this same market that took nearly 5 years to reach 6 billion.
According to the report, over 800 million USDT_ETH have been issued within two weeks of March 12. For ease of comparison, 740 million USDT_ETH was released from January 1 to March 11.
According to data extracted from CryptoCompare, traders bought 21 million BTC with USDT in March, equivalent to 73% of the total amount of BTC traded in fiat currency.
*The article is for information purposes and market analysis only, not an article that encourages investment. You should do your own research before making any investment decisions. Crypto, Forex news updated 24/7 on our social media channels: Follow us at TimeBit and Telegram Timebit-Cryptonews.