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Stablecoin chain activity exploded when Bitcoin exceeded $ 11,000

July 30, 2020

The chain activity of the three largest stable coins exploded when Bitcoin (BTC) broke the $ 11,000 price barrier.

7-day average transfer volume for USDT, DAI, USDC and the price of BTC. Source: Glassnode

7-day average transfer volume for USDT, DAI, USDC and the price of BTC. Source: Glassnode

The growth of stable coins

Stablecoin chain activity exploded when Bitcoin exceeded $ 11,000Stablecoin chain activity exploded when Bitcoin exceeded $ 11,000

Different stable coins, including market leader Tether (USDT), market capitalization has increased significantly recently. We note that the significant increase in USDT, DAI (DAI) and USDC (USDC) transfer volume coincided with the last run of Bitcoin. It is not very clear from the diagram whether this metric can be viewed as an early or lagging indicator.

In contrast to the increase in trade volume, the increase in the transfer volume of stable coins is a better representation of their use within the crypto ecosystem. Although an actual run cannot take place without the injection of additional Fiat, When it comes to trading Bitcoin, stable coins usually prevail. It appears that most whale operations are done with stable coins and not fiat currencies.

The 300 million Tether Exchange

Early today Tether announced a $ 300 million exchange from TRON (TRX) to Ethereum:

Twitter

Source: Twitter.

The company has not specified the reasons for such an exchange, but there may be a lack of demand in the TRON network.

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