Stablecoins Dominate Crypto Trading as Retail Activity Drops: CEX.io
Stablecoin supply reached $315B in Q1, driven by USDC growth and USDT decline, despite a drop in retail trading activity.Summary
Stablecoins demonstrated resilience in Q1, with total supply increasing by $8 billion to a record $315 billion, even as the broader crypto market contracted. This growth, though slower than Q4 2023, indicates investors used stablecoins as a defensive strategy. They accounted for 75% of total crypto trading volume, the highest on record, with transaction volume exceeding $28 trillion. However, retail-sized transfers decreased by 16%, while automated activity, driven by bots, surged to 76% of transaction volume, suggesting increased algorithmic trading and liquidity provisioning. A notable divergence emerged between stablecoin issuers, with USDC growing by $2 billion and USDT declining by $3 billion. Growth was also fueled by yield-bearing products, currently valued at $3.7 billion, which are facing increased scrutiny from regulators and traditional banks.
(Source：Cointelegraph)