• Coins MarketCap
    • Coins MarketCap
    • Crypto Calculator
    • Top Gainers and Loser of the day
  • Crypto Exchanges
  • Bitcoin News
  • Crypto News
    • Cryptocurrency
    • Blockchain
    • Finance
    • Investing
    • View all latest Updates regarding crypto
Monday, February 6, 2023
WIREOPEDIA
No Result
View All Result
Contribute!
CONTACT US
  • Home
  • Breaking News
  • World
  • UK
  • US
  • Entertainment
  • Business
  • Technology
  • Defense
  • Health Care
  • Politics
  • Strange
  • Crypto News
WIREOPEDIA
  • Home
  • Breaking News
  • World
  • UK
  • US
  • Entertainment
  • Business
  • Technology
  • Defense
  • Health Care
  • Politics
  • Strange
  • Crypto News
No Result
View All Result
WIREOPEDIA
No Result
View All Result
Home Blockchain

Stablecoins Are Becoming Increasingly Key To The Bitcoin Economy

wireopedia memeber by wireopedia memeber
December 12, 2021
in Blockchain, Crypto, Crypto Market, Cryptocurrency, Finance, Investing, Market
0
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter

As an increasing part of the bitcoin economy, stablecoins are collateralizing $7.21 billion of bitcoin futures open interest.

You might also like

South Korea Starts To Define Cryptocurrencies As Legislation Approaches

Oxford PhD Student Jailed For Defrauding Investors Of $2.6 Million In Crypto

On-chain Activity On BNB Chain Grew In Q4 Amid Market Downtrend: Messari

The below is from a recent edition of the Deep Dive, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

One of the most important economic discussions this year, apart from Bitcoin, is around the rise of stablecoins, and especially the rise of stablecoins pegged to the U.S. dollar. As the world reserve currency, everyone around the world demands U.S. dollars. Stablecoins can help satisfy that demand by enhancing the U.S. dollar’s features across accessibility and efficiency.

2021 has been a transformative year for the aggregate supply of USD stablecoins in the market with total supply reaching near $140 billion. That’s 401% year-to-date growth from a circulating supply of just $27.67 billion back in January. 

Stablecoins have become an increasingly large part of the bitcoin/cryptocurrency economy, doing everything from giving offshore exchanges dollar on/off-ramps, as well as allowing traders/speculators a way to borrow against their assets.

Just since April, the type of margin used in the bitcoin futures/derivatives market has dropped from 70% to approximately 45%, meaning that bullish traders/speculators increasingly no longer need to worry about a declining collateral value when the market faces a downturn.

The type of margin used in the bitcoin futures/derivatives market has dropped significantly.

There is currently $7.21 billion of bitcoin futures open interest that is collateralized by stablecoins.

Bitcoin futures open interest collateralized by stablecoins.

The exponential growth being witnessed in stablecoins is occurring while the U.S. is holding congressional hearings in regards to “digital assets” and stablecoins. One clip from the hearing in particular stood out:

In the clip, it was discussed how the growth of stablecoins in the crypto industry are actually strengthening the dollar’s hold as the world reserve currency, and increasing the demand for dollars. Empirically, this seems to be the case. 

Read Entire Article
Tags: BitcoinmagazineBlockchainCoin SurgesCryptocurrenciesMarket StoriesTrading
Share30Tweet19
wireopedia memeber

wireopedia memeber

Recommended For You

South Korea Starts To Define Cryptocurrencies As Legislation Approaches

by wireopedia memeber
February 6, 2023
0

South Korea is on its remarkable journey concerning blockchain developments and legislation On Monday, South Korea’s Financial Service Commission (FSC) noted that the blockchain-based tokens

Read more

Oxford PhD Student Jailed For Defrauding Investors Of $2.6 Million In Crypto

by wireopedia memeber
February 6, 2023
0

Cryptocurrency crimes are becoming prevalent and law enforcement agencies are on their toes to crack down on bad players and bring them to book  The British Royal Court...

Read more

On-chain Activity On BNB Chain Grew In Q4 Amid Market Downtrend: Messari

by wireopedia memeber
February 6, 2023
0
On-chain Activity On BNB Chain Grew In Q4 Amid Market Downtrend: Messari

The latest report from Messari researcher, James Trautman, revealed that BNB Chain recorded an increase in on-chain activity contrary to bear market trends According to the report, it...

Read more

Dash Price Prediction As DASH Targets 35% Gains To Record New Range High

by wireopedia memeber
February 6, 2023
0

DASH, like many other tokens in the crypto market, started the year with a bullish sentiment that inspired hope among investors The token rose 52%

Read more

What is cyberpunk: A beginner’s guide to the sci-fi genre

by wireopedia memeber
February 6, 2023
0

Cyberpunk is a subgenre of sci-fi that explores a dystopian future with advanced technology, where the line between man

Read more
Next Post

If You're Obsessed With Movies Starring Dwayne "The Rock" Johnson, You'll Be Able To Name 10/10 Of The Characters On This Quiz

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Related News

Crypto Market Setting Up For “Squeeze Of Historic Proportions”, Will BTC Price Get In The Way?

Crypto Market Setting Up For “Squeeze Of Historic Proportions”, Will BTC Price Get In The Way?

September 6, 2022

US Tennis Player Serena Williams’ VC Firm Leads Ugandan Fintech’s $12.3 Million Pre-Series A Funding Round

October 2, 2022
Bear Markets Are The Greatest Buying Opportunities. Here’s why

Bear Markets Are The Greatest Buying Opportunities. Here’s why

September 7, 2022

Browse by Category

  • Blockchain
  • Breaking News
  • Business
  • Crypto
  • Crypto Market
  • Cryptocurrency
  • Defense
  • Entertainment
  • Finance
  • Health Care
  • Investing
  • Market
  • Politics
  • Strange
  • Technology
  • UK News
  • US News
  • World
WIREOPEDIA

Wireopedia is an automated news feed. The Wireopedia AI pulls from sources with different views so you can see the various sides of different arguments and make a decision for yourself. Wireopedia will be firmly committed to the public interest and democratic values.

Privacy Policy     Terms and Conditions

CATEGORIES

  • Blockchain
  • Breaking News
  • Business
  • Crypto
  • Crypto Market
  • Cryptocurrency
  • Defense
  • Entertainment
  • Finance
  • Health Care
  • Investing
  • Market
  • Politics
  • Strange
  • Technology
  • UK News
  • US News
  • World

BROWSE BY TAG

Bitcoin Bitcoinist Bitcoinmagazine Blockchain Blockonomi Breaking News Business BuzzFeed Celebrity News Coin Surges Cointelegraph Cryptocurrencies Cryptoslate Defense Entertainment Health Care insidebitcoins Market Stories newsbtc Politico Skynews Strange Technology Trading UK US World

RECENT POSTS

  • Ski guide and snow plough driver among at least eight killed in Alps avalanches
  • Former Newcastle United star among missing following Turkey earthquake
  • Bored Ben Affleck, blushing Adele and unrecognisable Madonna – the seven best bits of the Grammys
  • South Korea Starts To Define Cryptocurrencies As Legislation Approaches
  • Oxford PhD Student Jailed For Defrauding Investors Of $2.6 Million In Crypto

© 2022 WIREOPEDIA - All right reserved.

No Result
View All Result
  • Home
  • Breaking News
  • World
  • UK
  • US
  • Entertainment
  • Business
  • Technology
  • Defense
  • Health Care
  • Politics
  • Strange
  • Crypto News
  • Contribute!

© 2022 WIREOPEDIA - All right reserved.

  • bitcoinBitcoin(BTC)$22,807.00-1.44%
  • ethereumEthereum(ETH)$1,624.87-1.45%
  • tetherTether(USDT)$1.00-0.04%
  • binancecoinBNB(BNB)$327.02-0.27%
  • usd-coinUSD Coin(USDC)$1.00-0.06%
  • rippleXRP(XRP)$0.397743-0.89%
  • binance-usdBinance USD(BUSD)$1.000.07%
  • cardanoCardano(ADA)$0.389338-0.66%
  • dogecoinDogecoin(DOGE)$0.091273-1.18%
  • okbOKB(OKB)$43.690.87%
  • matic-networkPolygon(MATIC)$1.20-1.41%
  • solanaSolana(SOL)$22.96-3.17%
  • shiba-inuShiba Inu(SHIB)$0.000014-1.62%
  • staked-etherLido Staked Ether(STETH)$1,619.09-1.59%
  • polkadotPolkadot(DOT)$6.64-0.11%
  • litecoinLitecoin(LTC)$96.40-0.60%
  • avalanche-2Avalanche(AVAX)$20.00-1.50%
  • tronTRON(TRX)$0.063362-1.47%
  • daiDai(DAI)$1.000.04%
  • uniswapUniswap(UNI)$6.77-2.50%
  • cosmosCosmos Hub(ATOM)$14.36-0.94%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$22,720.00-1.65%
  • chainlinkChainlink(LINK)$6.94-1.03%
  • bitcoin-cashBitcoin Cash(BCH)$133.06-1.22%
  • stellarStellar(XLM)$0.091103-0.50%
  • crypto-com-chainCronos(CRO)$0.080313-1.95%
  • nearNEAR Protocol(NEAR)$2.35-1.89%
  • filecoinFilecoin(FIL)$5.25-0.80%
  • algorandAlgorand(ALGO)$0.256576-0.77%
  • vechainVeChain(VET)$0.024042-1.42%
  • axie-infinityAxie Infinity(AXS)$10.83-1.48%
  • elrond-erd-2MultiversX(EGLD)$44.63-1.61%
  • terra-lunaTerra Luna Classic(LUNC)$0.0001841.81%
  • compound-ethercETH(CETH)$32.65-1.68%
  • terrausdTerraClassicUSD(USTC)$0.0321181.11%
  • ftx-tokenFTX(FTT)$1.91-20.60%