The stablecoin supply on exchanges was over $44 billion in November of last year. However, regulatory actions and other fundamental factors have caused the stablecoin supply to contract over the months.
Currently, only around $24 billion of stablecoins are being held in various cryptocurrency exchanges. Some experts speculate that many stablecoin holders may have converted them to other cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) or even to fiat currencies such as the United States dollar.
Stablecoins are digital tokens that track the value of other stable assets, with stablecoins linked to fiat currencies like the US dollar being the most popular. Tether Holdings issues USDT, which is pegged to the US dollar, and is present in multiple blockchains such as Tron and Ethereum.
Its issuers claim that the token is backed by cash and cash equivalents, including short-term securities like Treasuries. Other stablecoins include USDC by Circle, BUSD by Paxos, and DAI by MakerDAO, which is an algorithmic stablecoin that is minted only on Ethereum.
Stablecoins have historically served as a gateway to allow users to channel funds from traditional finance to the cryptocurrency market. As stablecoins are less volatile than cryptocurrencies like Bitcoin, tokens like DAI, USDT, and USDC can act as a buffer when crypto prices are under pressure.
Glassnode, a blockchain intelligence firm, reported on March 26 that the supply of stablecoins on exchanges has decreased by over 50% in four months to less than $24 billion.
The stablecoin supply on exchanges was over $44 billion in November of last year. However, regulatory actions and other fundamental factors have caused the stablecoin supply to contract over the months.
Currently, only around $24 billion of stablecoins are being held in various cryptocurrency exchanges. Some experts speculate that many stablecoin holders may have converted them to other cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) or even to fiat currencies such as the United States dollar.
Stablecoins are digital tokens that track the value of other stable assets, with stablecoins linked to fiat currencies like the US dollar being the most popular. Tether Holdings issues USDT, which is pegged to the US dollar, and is present in multiple blockchains such as Tron and Ethereum.
Its issuers claim that the token is backed by cash and cash equivalents, including short-term securities like Treasuries. Other stablecoins include USDC by Circle, BUSD by Paxos, and DAI by MakerDAO, which is an algorithmic stablecoin that is minted only on Ethereum.
Stablecoins have historically served as a gateway to allow users to channel funds from traditional finance to the cryptocurrency market. As stablecoins are less volatile than cryptocurrencies like Bitcoin, tokens like DAI, USDT, and USDC can act as a buffer when crypto prices are under pressure.
