The spot trading volume is 13.9 billion US dollars, the spring of copycats is coming?
Editor's Note: This article comes fromCrypto Valley Live (ID: cryptovalley)Editor's Note: This article comes from
Crypto Valley Live (ID: cryptovalley)
Crypto Valley Live (ID: cryptovalley)
, Author: Nate Maddrey & Coin Metrics Team, Translation: Liam, reproduced by Odaily with permission.
The supply of stablecoins has exploded in 2020, but the exact reasons for the increase are unclear. It took 5 years for the stablecoin supply to hit $6 billion, but after the cryptocurrency crash on March 12, it took only 4 months for the stablecoin supply to grow from 6 billion to 12 billion.
Most of the supply growth comes from Tether. On March 12, 2020, due to the aggravation of the new crown epidemic, the global stock market crashed, and the prices of most encrypted assets fell by more than 50%. In the two weeks following the crash, over 800 million new USDT_ETH were issued. Compared with the previous data, from January 1 to March 11, a total of 740 million USDT_ETH was issued. In addition, the supply of USDT_TRX will increase by more than 2 billion by the end of June.
The graph below shows hourly stablecoin prices from March 11 to March 14 (using Coin Metrics’ hourly reference rate). Between 2:00 and 6:00 UTC on March 13, the prices of most stablecoins jumped to between $1.03 and $1.06. This coincides with the time of BitMEX liquidation, when the price of Bitcoin fell as low as $3,900.
Since the stablecoin is essentially a price-linked asset, the deviation of the stablecoin price will create some arbitrage opportunities. For example, when the price of a stablecoin is higher than $1, it can be used as a new supply at $1 each and then sold on an exchange for a profit. If done on a large enough scale, even a price of just over $1 can turn out to be quite profitable.
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Network Data Insights
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But small-cap assets have clearly outperformed over the past week. Ripple (XRP), Litecoin (LTC), and Bitcoin Cash (BCH) all outpaced BTC and ETH in week-to-week growth across most usage, valuation, and economic metrics. XRP leads in many categories, with a 14.8% increase in the number of active addresses and an 11.8% increase in market capitalization.
network highlights
Is this a sign of the coming season of copycats? We'll explore it in this week's Network Highlights and Market Data Interpretation.
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network highlights
The number of active addresses for DOGE has been growing rapidly in July, but remains below 2020 highs. Web usage is not growing as fast as valuations, a potential signal of price bubbles.
Interpretation of market data
Cardano (ADA) is also growing recently. ADA’s market capitalization reached a new 2020 high on July 8 in anticipation of the upcoming Shelley mainnet launch. Cardano’s market capitalization has surpassed that of Litecoin despite around 7x fewer daily active addresses.
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Interpretation of market data
This week’s spot trading volume has an increase of about 13.9 billion US dollars, or nearly 38%. This is impressive considering BTC and ETH have traded in low volatility ranges in the past. Low volatility usually coincides with low trading volume, but over the past week, speculation in several key altcoins has driven volume up. In this analysis, we will pay special attention to the following three: Doge, Cardano and ChainLink. Together they accounted for 20% of this week’s gains.
