Home Economy Bitcoin : Since July, the market cap for stablecoins has increased by $ 100M per day Bitcoin : Since July, the market cap for stablecoins has increased by $ 100M per day September 4, 2020 The stablecoins market cap is completely exploding
Nic Carter, co-founder of analytics firm CoinMetrics, shared a graph on Twitter that shows the incredible evolution of the stablecoins market cap : everyone got so excited about DeFi no one pointed out that stablecoins have been adding $ 100m / day since mid Julyhttps: //t.co/SM0hj7mBsp pic.twitter.com/ZGtzQOY9qL
– nic carter (@nic__carter) September 3, 2020
“Everyone has been so excited about DeFi that no one has pointed out that stablecoins have grown by $ 100 million per day since mid-July.“
The affected stablecoins are Binance USD (BUSD), Dai (DAI), HUSD, Paxos Standard Token (PAX), USD Coin (USDC), USDK, Tether (USDT), USDT_ETH and USDT_TRX.Unsurprisingly, it’s Tether which largely carries this flight : USDT now represents a market cap of $ 13 billion, far ahead of other stablecoins.For comparison, the USDC market cap is “only” 1.5 billion dollars at present.
Read also: Tether: 1 billion USDT goes from Tron to Ethereum Check out the USDT on Binance » DeFi continues its mad race
As Nic Carter points out, this explosion of course comes largely from DeFi .Stablecoins are particularly used in DeFi protocol liquidity pools.Beyond USDT, DAI and USDC are also requested for borrowing on Compound and Aave.
The breakthrough of stablecoins also comes as many governments consider the creation of digital currencies based on their fiat currencies … But they are a few steps behind, according to Carter: Tfw the private sector rose to the challenge of delivering digital cash and policy makers are muddling around with CBDC PoCs
– nic carter (@nic__carter) September 3, 2020
“The private sector has risen to the challenge and delivered digital cash, but policymakers are bogged down in proof of concept for central bank digital currencies (CBDCs).“
As long as the United States continues to hesitate to create a real digital currency based on the dollar, the field is effectively open for the USDT, USDC and their consorts.The appetite for stablecoins is in any case evident when we see the progression of their market cap.
However, we must wait a softening of the DeFi sector to see if this trend will last.
Also read: DeFi: Wrapped BTC (WBTC) supply doubled in August
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About the Author : Marine Debelloir Intrigued by Bitcoin for several years, I developed a passion for crypto-currencies and the innovative technologies that result from them.I like to unearth the most delicious information to share it with you and help democratize this fascinating universe.But I don’t stop there! I also like to analyze projects related to cryptos and blockchains, which fascinate me just as much.All articles by Marine Debelloir.Related Posts.
