Cryptocurrencies

$ 100 million more every day! – Cryptocurrencies

Sharp increase in stablecoins including Tether (USDT) and Maker (DAI)

DeFi is exploding: this is no longer news! Stablecoins take advantage: that on the other hand, is probably fresh news. The supply of stablecoins has been experiencing tremendous daily growth for 2 months now. The price of stablecoins may be theoretically stable, but not their supply.


The stablecoin boom amid an explosion in DeFi

DeFi is developing exponentially, what more would it take to attract the attention of investors and analysts ?

Another crypto sector is experiencing equally significant growth, that of stablecoins.

In a tweet dated September 3, the founder of Coin Metrics, Nic carter, indicates that the supply of stablecoins has grown by almost 100 million per day over the past 2 months.

explosion offers stablecoins 100 million more

Source : Image via Twitter

Carter explain that the rise of DeFi The reason for the increase was that the industry’s high rates of return and interest are absorbing the supply of stablecoins.

The latter are indeed the most popular tokens in the DeFi protocol liquidity pools.

Stablecoins, these international currencies

The DAI and theUSDC are the 2 most used tokens for protocol loans and borrowings Compound (COMP). They are also the 2 most popular tokens inAave (LEND).

In terms of market capitalization, Tether (USDT) is the largest stablecoin in the market with an estimated value of $ 13.7 billion which accounts for almost 80% of the market.

During the months of July and August 2020, the trading volume of theUSDT grew by almost 150%, from $ 21.9 billion to nearly $ 54 billion.

On the regulator side, the governor of Bank from England, Andrew Bailey, said that stablecoins could bring benefits to investors, but he stressed the need for a strict regulatory framework for their use.

Moreover, given the cross-border nature of these tokens, he insists on establishing cooperation between the competent authorities at the international level.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Are stablecoins the gateway to the world of fiats and cryptos, the middle ground between defenders of old finance and new? Does their current growth positively or negatively impact their future and that of the cryptosphere in general? Is their future strongly linked to that of DeFi? The findings of this explosion are made; future in-depth analyzes will be welcome. Let’s not stop at the publication of staggering figures that make you dizzy!

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