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Decrease in Stable Currency Supply and Trading Volume

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According to the report, according to the data of The Block Research, the supply of stable currency issued in February further contracted to US $128.4 billion,…

Decrease in Stable Currency Supply and Trading Volume

According to the report, according to the data of The Block Research, the supply of stable currency issued in February further contracted to US $128.4 billion, with a decline of 3.2%. The market share of USD stable currency USDT and USDC rose to 55.7% and 31% respectively. On the other hand, after the New York State Department of Financial Services ordered Paxos Trust Co. to stop issuing more BUSD tokens, about $5.6 billion of BUSD has been destroyed. In addition, the adjusted trading volume on the stable currency chain also declined to US $558.1 billion in February, a drop of 17.6%.

The supply of stable currency issued in February further contracted to US $128.4 billion, down 3.2%

Interpretation of the news:


The recent report by The Block Research has shown a decline of 3.2% in the supply of stable currency issued in February, contracting to US $128.4 billion. This raises questions and concerns regarding the stability of the cryptocurrency market, as stable currencies are considered a hedge against volatile cryptocurrencies such as Bitcoin.

The declining trend in supply was accompanied by a drop of 17.6% in the adjusted trading volume on the stable currency chain, which fell to US $558.1 billion in February. This decrease in trading volume is significant as it indicates a reduced demand for stable currencies in the market. It’s interesting to note that the decline in trading volume is significantly higher than the decrease in the supply of stable currency, indicating that there may be other factors at play.

According to the report, the market share of USD stable currencies USDT and USDC has risen to 55.7% and 31% respectively. This is significant as it shows dominance in the stable currency market by USD-based currencies. It’s unclear if this trend will continue, but it’s indicative of investor’s preference for currencies that are pegged to the US dollar.

On the flipside, the New York State Department of Financial Services ordered Paxos Trust Co. to stop issuing more BUSD tokens, and as a result, about $5.6 billion worth of BUSD tokens have been destroyed. This move may have contributed to the reduction in supply and trading volume of stable currencies in the market.

In conclusion, the decline in supply and trading volume of stable currencies in the market is cause for concern. However, the rise in market share of USD stable currencies and the destruction of BUSD tokens may indicate that investors are still looking for stable currencies that are pegged to the US dollar. It’s important to note that stable currencies remain an important element of the cryptocurrency market and their stability is crucial for the overall health of the market.

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