Kaiko: The market depth of Coinbase in March halved, and the currency security fell by 13%

It is reported that according to Kaiko’s research data, the trading volume of USDC-USD trading pair hit a record high of US $600 million on March 11, with Kraken as the main trading partner. In addition, Aave and Compound received more than US $2 billion in repayment on March 11, most of which were USDC.

Interpretation of this information:

The recent surge in the trading volume of USDC-USD trading pairs is a clear indication of the growing demand for cryptocurrency trading. According to Kaiko’s research data, the trading volume of this pair hit an all-time high of US $600 million on March 11, highlighting the increasing popularity of cryptocurrencies among investors.

Kraken, a leading cryptocurrency exchange, emerged as the main trading partner for USDC-USD trading pair, indicating a preference for this platform among investors. This trend could be attributed to the exchange’s user-friendly interface, security features, and low transaction fees.

Furthermore, Aave and Compound received more than US $2 billion in repayment on March 11, which primarily comprised of USDC. This indicates that stablecoins, like USDC, are gaining popularity among investors as they are pegged to the US Dollar and offer a relatively stable investment option compared to volatile cryptocurrencies.

The surge in trading volumes of USDC-USD trading pairs also highlights the underlying fear among investors regarding the current economic climate. The COVID-19 pandemic, a looming recession, and declining value of traditional currencies have prompted investors to seek alternative investment options.

In the wake of the pandemic, the adoption of cryptocurrencies and stablecoins has accelerated, as investors look beyond traditional investment options. The increasing use of cryptocurrencies, especially stablecoins, can be attributed to their unique features, including immediate settlement, cross-border transactions, and low fees.

In conclusion, the growing demand for USDC-USD trading pairs and the increasing popularity of stablecoins is a sign of shifting investor sentiment and a desire for alternative investment options. Cryptocurrencies offer a unique proposition for investors who are seeking immediate, secure, and low-cost investment options. It is critical for investors to stay informed and updated on the latest developments in the cryptocurrency market to make informed investment decisions.