Stablecoin On Stock Exchanges Is At The Lowest In The Last 2 Years: Rise Or Fall?

According to the data, stablecoin volume on centralized cryptocurrency exchanges (CEX) has fallen to the lowest level in the last 2 years.

According to data provided by on-chain analysis firm Glassnode, the amount of stablecoins held on centralized exchanges has dropped below the level in May 2021. In the presented report BUSD, GUSD, HSUD, DAI, USDP, EURS, SAI, sUSD, USDT And Allowing transactions with USDC Central stock market data was used.

In the light of data Monday, May 1 The amount of stablecoin assets in all central exchanges was recorded as the lowest level in 2 years. 21.06 billion fell to the dollar. The dominant stablecoin of the market Tether (USDT) while a decrease in the volume Binance USD (BUSD) And USD Coin (USDC) There was also a steady decline in market value. Volume of stablecoins since the beginning of the year 44% while the Bitcoin price is falling, it is about 70%Notable for its rise.

Lack of liquidity can create problems

According to analysts commenting on the situation, increasing pressure from US regulators may have pushed investors away from stablecoins. On the other hand, stablecoin exit from the market is usually loss of liquidity of the market This is interpreted as a bearish signal among analysts.

On the other hand, there are experts who think that the amount of stablecoins may have decreased because investors are investing in Bitcoin and other cryptocurrencies with their stablecoin assets, and this is a preparation before the rise.

As it will be remembered, the stablecoin market is the stablecoin issuer of the US regulatory institutions. to Paxos took a serious blow on the pressure and USDC lost its dollar stability.

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