Bitcoin

Stablecoin Trading Dominates Monday’s Crypto Market, Tether and BUSD Sell at Premiums

On Monday, the crypto economy experienced significant market activity with $183.85 billion in global trade volume over 24 hours, with a large portion of those trades involving stablecoins. USDC traded near parity with the U.S. dollar, and several stablecoins, including tether and BUSD, sold at premiums. Tether reached a high of $1.04 per unit and BUSD rose to $1.03 per coin during the morning trading sessions (ET).

Small Handful of Stablecoin Assets Trade for Premiums as USDC Closes $1 Parity Gap

On Monday, stablecoins experienced significant trade volumes after USDC had difficulty maintaining its peg to the U.S. dollar over the weekend. This caused five other stablecoins to depeg just below the $1 value. Today, USDC has almost closed the gap and is trading at $0.99 per coin, but traders looking to exchange USDC for tether (USDT), binance usd (BUSD), or another stablecoin may have to pay a premium.

Currently, tether (USDT) is trading at two cents above the U.S. dollar, with an early morning trading price of $1.04 per coin. Some tether (USDT) spikes went as high as $1.076 per USDT on Monday. BUSD saw a similar premium at $1.03 per unit, and other stablecoins, such as TUSD and DAI, are also experiencing higher prices based on the exchange used by traders. At $1.02 per unit and with 72.55 billion USDT in circulation, the additional two cents brings USDT’s market cap up to $74.23 billion at the time of writing.

Of the $183.85 billion in global trade volume, USDT accounts for $94.27 billion or 51.27% of the volume. USDC has a global trade volume of $10.79 billion, representing 5.87% of the $183 billion in trades during the last 24 hours. Bitcoin (BTC) and ethereum (ETH) have also captured a significant amount of the day’s trading volume. Bitcoin (BTC) rose 16.6% against the U.S. dollar on Monday and saw $70.22 billion in swaps, while ethereum (ETH) increased 12.9% and commands $68.13 billion in global trading volume.

With the small premiums and USDC returning to $1 parity, the market capitalization of the stablecoin economy is currently $136.25 billion. While stablecoin premiums and this weekend’s depegging event may not be beneficial for some traders, the discrepancies benefit stablecoin arbitrageurs significantly. Furthermore, Curve, the decentralized exchange (dex) focused on stablecoin trading, has recorded $1.02 billion in trade volume and is the second-largest dex by trade volume on Monday.

Tags in this story
arbitrageurs, Bitcoin, Blockchain, BTC, BUSD, crypto economy, crypto trading, Cryptocurrency, cryptocurrency market, cryptocurrency news, cryptocurrency prices, Cryptocurrency Trading, Curve, DAI, decentralized exchange, depegging, Digital Assets, ETH, Ethereum, Global Trade Volume, Market Activity, Market Capitalization, Premiums, Stablecoins, Tether, trade volume, Traders, Trading sessions, tusd, US Dollar, USDC, USDC Depeg, USDC repeg

What are your thoughts on the current stablecoin market and the impact of recent premiums and depegging events on traders and investors? Share your thoughts about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Articles You May Like

South Korean defence minister resigns
OpenAI targets 1bn users in next phase of growth
Here’s what the rise of homeowners associations means for buyers
Funding issues and ‘over-optimism’ behind UK failures on jobs data
Wall Street’s AI-powered rally risks ‘correction’, Vanguard warns