Stablecoins have been a large of the industry since making its introduction in the space back in 2015. Tether was the first stable asset in the digital currency medium and currently, it is the largest and most used stablecoin coin in the space.
However, stablecoins’ impact on the digital asset space may only increase over the next few months.
According to a recent report by Coinmetrics, it has been observed that the supply of stablecoins has drastically spiked since the COVID-19 became a global pandemic.
The chart above clearly indicated that the growth of stablecoins has been increasing over the past week since Bitcoin’s massive drop.
Amidst the turmoil, the network value of stablecoin went off the charts as well. According to the report, the collective digital assets all-the-high transfer value was achieved on March 13th, incurring a total transfer of 444.2 million for all the stable assets combined.
A lot of capital has continued to flow into the ecosystem following the market crash, as it was assumed that investors were looking to protect their assets. In their efforts to find a stability among stable coins, USDC has been a lucrative prospect with the coin attaining the largest percentage-wise change over the past 30-days.
The stable coin backed by Coinbase registered a market increase of over 50 percent in the past month, verifying the significant capital movement in the industry.
Although USDC is mostly used on Coinbase, MakerDAO recently announced its addition to the list of collaterals that can be used among various DeFi applications.
Surprisingly, the announcement to add USDC as a part of the collateral list, after the valuation of their parent stable asset DAI, was on 12th March.
Following the crash, DAI’s stabilization mechanism led to a mass MakerDAO collateral liquidation and DAI’s valuation dropped from $1.06 to $1.02, as observed on March 22nd.
In spite of USDC’s growth, Tether continued to reign over the stablecoin space as its market valuation increased by a whopping $660 million since March 10th.
At press time, USDT registered a total market cap of $4.64 billion while accounting for more than 50 percent of the total stablecoin present in the current digital asset industry.
