The cryptocurrency sector has seen significant events in September, with the stablecoin market capitalization reaching a new low of $124 billion. This is the lowest amount since August 2021 and is 18 consecutive months of decline. Despite this, the market has shown strength by rebounding swiftly and stabilizing.Stablecoins, also known as “pegged” or “linked” cryptocurrencies, have their value set in relation to that of a traditional currency, commodity, or financial instrument. This is due to the significant volatility of the most well-known cryptocurrencies, such as Bitcoin (BTC).Two well-known stablecoin assets, Tether (USDT) and DAI, have shown modest gains despite the downtrends that have engulfed the entire market. The market capitalization of the USDT stablecoin has increased by $334 million, indicating a 0.4% monthly rise, while maintaining its dominant position with a 67.2% lion’s share.Stablecoin trading volume on centralized exchanges, such as Coinbase Global Inc., decreased by 28% to $331 billion in September. This is the lowest monthly total since July 2020.Despite the numerous scandals and bankruptcies in 2022, the use of stablecoins to ease bitcoin trading and shield assets from market swings is common. The overall value of stablecoins has increased dramatically this year, as more people resorted to stablecoins as a safe haven from troubles in traditional banks.September brought about a number of changes in the bitcoin space. While most stablecoins did not do well, some, like DAI and USDT, did. Overall, the market held steady and dealt with sporadic interruptions with relative ease. Additionally, we witnessed the rise of Layer-2 solutions and account abstraction, which tackle the scalability issue. New ventures are joining the scene, changing the decentralised finance environment.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 8 |
| People | None |
| Companies | Tether (USDT), Silicon Valley Bank, Coinbase Global Inc., Silvergate Bank, DAI, Federal Open Market Committee (FOMC) |
| Currencies | Ethereum, Bitcoin, Dai, Tether |
| Securities | None |
