- Even though the cryptocurrency exchange has seen growth, the Stablecoin market share of USDC has observed a steep drop.
- Researchers noted that in May, the trading volume in USDC paired with BTC fell by 78% (to 0.18 million BTC).
The trading volume of stablecoin USD coin (USDC) has witnessed a sharp decrease in May. This was reported after a study done by CryptoCompare. Before the observation made by the analyst, a trend was observed of increasing investment in digital currencies which were backed by fiat money. The best results were shown by Tether (USDT). The USDC has earlier boasted about their substantial capital inflow during the early months of 2020. The value of both USDC and Bitcoin peaked in February before the drop in trade began.
A report that recently came out on June 5, by CryptoCompare and published by BitMex research reveals a favourable upward drift in the industry. This report is following both spot and derivatives while studying the cryptocurrency volume tendency. Even though the cryptocurrency exchange has seen growth, the Stablecoin market share of USDC has observed a steep drop.
At the beginning of the year, Stablecoins showed a strong pick-up trading volume. The volume almost doubled and continued the swell in the following months. Owing to the Black Thursday of 2020 this March, it recorded its highest elevation this year. Just a month later the volume sharply started decreasing most likely due to the Coronavirus pandemic. The Bitcoin market resumed its growth again in May both in value and volume, but Stablecoin volume is yet to recover.
Stablecoin USD coin’s (USDC) collapse
While the whole cryptocurrency industry is extensively recovering and growing, USDC’s volume hasn’t shown a significant increase since its decline in March. Researchers noted that in May, the trading volume in USDC paired with BTC fell by 78% (to 0.18 million BTC). USDC is one of the most used stablecoins launched on the Ethereum blockchain. Researchers attributed the drop in trade against Bitcoin to the recent reduction in the USDC Coinbase reward from 1.25% to 0.15%.