Stablecoins Printed About $5 Billion During Bitcoin’s 80% Run-Up In Q4

After the March sell-off, Bitcoin has been slowly making its way up and it has been in Q4 of 2020 that it fully rocketed.

In early October, BTC was trading around $10,500 when it went on a tear, climbing to $19,965 on Tuesday, a level that was only seen on a few cryptocurrency exchanges during the top of the 2017 bull market.

At that time, the market cap of fiat-backed cryptos was a mere $1.5 billion which today reached nearly $25 billion, an increase of 1,560% in three years.

This growth actually started during the March sell-off which saw not only Bitcoin but the broad asset class; stocks, gold, oil, and everything else except for USD crashing due to coronavirus.

The total stablecoins market cap was under $6 billion in early March while the most popular stablecoin Tether’s (USDT) market cap was under $5 billion.

Today, Tether’s market cap is close to hitting $20 billion, a growth of more than 310% in nine months.

During Bitcoin’s euphoric rally of about 80% since October, USDT’s market cap actually increased by 25%, from $16 billion to nearly $20 billion.

While Tether has somewhat slowed down, but no doubt remains the dominant force by a wide margin, other stablecoins have started to capture a bit more of the market share.

PAX supply has increased by about 100 million since October 21st when PayPal announced that it would be supporting cryptocurrencies. Paxos, the company behind PAX, is used by PayPal as their infrastructure provider.

image1

Another stablecoin leading the market is USDC, which is being used as a tool of US foreign policy. On Nov. 20th, Circle announced a partnership with the government of Venezuela to distribute aid to their front-line medical workers.

While Venezuela’s currency is suffering from hyperinflation due to money printing, stablecoins offer an attractive option. As a result, USDC’s daily active addresses hit an all-time high of 43.21k, just four days after the announcement, as per Coin Metrics.

The market cap of USDC, developed by Circle and Coinbase’s consortium Centre, actually exploded in August, going from $1 billion to the current $3 billion. Binance’s stablecoin BUSD saw a jump of 270% (nearly $500 million) in the last three months.

Read Original/a>
Author: AnTy

Related Articles