The Rise of Stable Currency Trading Volume and its Impact on Bitcoin and Ethereum Chains

According to reports, according to The Block Pro data, the stable currency on chain trading volume after adjustment in March increased to $823.2 billion, an increase of 47.5%; However, the supply of issued stable currency has slightly shrunk to $125.6 billion, a decrease of approximately 2.3%. Among them, the market share of USD stable currency USDT has increased to 64.1%, while the market share of USDC has decreased significantly, to 24.6%. In addition, after the adjustment in March, the total transaction volume on the Bitcoin and Ethereum chains increased by 48.8% to $255 billion, of which the transaction volume on the Bitcoin chain increased by 48.3% and the transaction volume on the Ethereum chain increased by 62.7%.

After adjusting in March, the trading volume on the stable currency chain reached $823.2 billion, up 47.5%

Stable currency trading volume has witnessed a significant increase in March 2021, according to reports from The Block Pro data. After adjustments, the trading volume rose to $823.2 billion, which indicates a 47.5% increase. However, the supply of issued stable currency slightly shrank to $125.6 billion, which is approximately a 2.3% decrease. USDT has emerged as the dominant stable currency accounting for 64.1% of the market share, while the market share of USDC has decreased significantly to 24.6%. Besides, the transaction volume on the Bitcoin and Ethereum chains also increased substantially. The total transaction volume on these chains increased by 48.8% to $255 billion, out of which the transaction volume on the Bitcoin chain increased by 48.3%, and the transaction volume on the Ethereum chain increased by 62.7%.

Introduction

The rise of stable currency trading volume and its impact on the Bitcoin and Ethereum chains is currently a topic of interest for many investors and traders. Over the years, stable currencies have assumed a critical role in the digital currency market, providing users with stability in times of market volatility. Stable currencies are designed to maintain a steady price, and they are backed by stable assets, such as gold, fiat currencies, or other digital assets.

A Surge in Stable Currency Trading Volume

In March 2021, stable currency trading volume witnessed an impressive surge, touching $823.2 billion after adjustments. This represents a 47.5% increase in stable currency trading volume, which is a significant rise in the value of stable coins circulated. However, the supply of the issued stable currency slightly shrank to $125.6 billion, marking a 2.3% decrease, which could be attributed to the decrease in market volatility or changes in the market conditions

USDT Emerges as Dominant Stable Currency

USDT has historically been the most well-known and widely-used stable coin in the digital currency market, and this was no different in March. USDT accounted for 64.1% of the market share, representing a considerable increase in its dominance. On the other hand, USDC, which was previously gaining market share, saw a significant decrease, to 24.6%, suggesting that traders are increasingly opting for USDT for their transactions.

The Impact on Bitcoin and Ethereum Chains

Stable currency trading volume has a direct impact on the trading volume on the Bitcoin and Ethereum chains. In March 2021, the total transaction volume on these chains increased by 48.8% to $255 billion. The transaction volume on the Bitcoin chain increased by 48.3%, while the Ethereum chain witnessed a 62.7% increase. Given the rising popularity of stable currencies, it is natural to assume that this trend could continue in the future.

Bitcoin Chain

The Bitcoin chain witnessed a significant surge in transaction volume with a 48.3% increase to $198.4 billion. The Bitcoin market has traditionally been characterized by wild market swings that drive investors towards stable coins to hedge their risks. With stable currencies like USDT playing an increasingly larger role in the digital currency market, it can lead to more investors flocking to Bitcoin.

Ethereum Chain

The Ethereum Chain is one of the promising players on the digital currency market. Ethereum was relatively new when compared with Bitcoin, but it had established itself with great strides. March 2021 saw a surge in Ethereum chain trading volume, with transaction volume increasing by 62.7% to $57.1 billion. The increase in stable currency trading volume also translated into growth for Ethereum’s ecosystem.

Conclusion

The surge in stable currency trading volume is an exciting development in the digital currency market. Given the trend, it is conceivable that stable currency would continue to surge in trading volume, with the market becoming increasingly competitive, and new stable coins are emerging to vie for market share. However, the cryptocurrency market is still characterized by its tendency to be unpredictable, and traders should consider this when choosing their investment strategies.

FAQs

Q1. What is the significance of stable currency trading?

A1. Stable currencies provide traders with stability in times of market volatility, allowing them to hedge risks and make investments with confidence.

Q2. Why has USDT emerged as the dominant stable currency?

A2. USDT has historically been the most well-known and widely-used stable coin in the digital currency market.

Q3. What is the impact of the rise of stable currency trading volume on the Bitcoin and Ethereum chains?

A3. The rise in stable currency trading volume has led to an increase in the trading volume on the Bitcoin and Ethereum chains. It could also lead to more investors flocking to these cryptocurrencies.