CoinGecko recently released its quarterly report where it provided insights about the cryptocurrency market and touched several aspects. Per the report, the top five stablecoins (USDT, USDC, BUSD, DAI, UST) have surged more than 120 percent year to date and their total market cap has risen above $60 billion.
However, USDT takes the largest share with its market cap currently above $46 billion. Earlier this month, Tether USDT announced that the stablecoin would be added to the Polkadot network and Kusama network.
BUSD and UST have risen by more than 250 percent and 800 percent respectively since the year started. The market cap of USDC is now above $11.3 billion, while BUSD is currently above $5.4 billion, DAI is more than $3.4 billion and UST has $1.7 billion.
CoinGecko continued by touching on the rising popularity of the Binance Smart Chain and referred to NFTs as the “gateway drug to crypto”. In the report, it also mentioned the launch of its CoinGecko Premium.
Stablecoins Used More as Exchange Medium — Coingecko
Based on the report, more people use stablecoins as a means of exchange than BTC and ETH. As a result, the combined trading volume of the top-30 stablecoins rose to approximately $600 billion in the first quarter of 2021.
CoinGecko used a metric called “Velocity” to measure the rate of average trading volume of a cryptocurrency against the market cap. A high velocity would indicate that the cryptocurrency is widely traded within the economy. As per the report, USDT and BUSD have the highest velocity as compared to Bitcoin and Ethereum.
According to CoinGecko’s report, one reason why Bitcoin might continue on its upsurge is due to the rising fear of inflation in the US. The Fed wants to keep the interest rates low in response to President Joe Biden’s $3 trillion budget. This has led to fear of inflation and has strengthened the mainstream’s perception of Bitcoin as a hedge against inflation.