Stablecoins are fluctuating significantly in the cryptomarket as of late, as the total value barely crosses the $123 billion threshold. Interestingly, despite a noticeable increase in fiat-pegged token trading, by October 13, stablecoins only constituted a mere 22.96% of global crypto trade volume, a steep fall from the previous day’s 74%.
Challenging Climate for Stablecoins
Over the past weeks, the fiat-pegged tokens market has hit some turbulence. Tether, one of the most prominent stablecoins, has seen a marginal increase of just 0.5% in its supply. In contrast, USD Coin (USDC) has had a drop in stockpile by 4.3%. On the other hand, DAI, which holds the third spot in terms of market cap amongst stablecoins, has had its share reduced by 1.3%. TrueUSD (TUSD) and BUSD were on different sides of the spectrum as well, with TUSD seeing a 6.5% rise in its supply, while BUSD faced a stark 15.5% reduction.
BUSD’s market cap now hovers around $2.13 billion, precariously close to slipping below the $2 billion notch. Other notable performances include Tron’s USDD which remained steady over the past month, Pax dollar (USDP) losing 7.2% of its supply, and the newcomer, First Digital USD (FDUSD), enjoying an 18.7% boost in its supply. As of mid-October, Paypal’s newly introduced stablecoin quickly became the 13th largest with a circulation of 119 million.
Interestingly, on the morning of October 13, stablecoins constituted only 22.96% of the whopping $62 billion global trade volume, a sharp decline from the 74% share it had just a day earlier. Amidst these fluctuations, Tether also announced a major change in its leadership hierarchy: Paolo Ardoino, previously the Chief Technology Officer, will take over as CEO in December, with Jean-Louis van der Velde moving to an advisory role.
In more news, USDR, a less prominent stablecoin, saw its value halve from its previous $1 parity. Managed by Tangibledao, this stablecoin lost its parity on October 11 and has failed to recover its ground. The issue has been acknowledged by the team, but no public responses have been allowed so far. Consequently, USDR has joined the growing list of fiat-pegged tokens experiencing depegging from the dollar.
Over to you! What are your thoughts on these shifts in the stablecoin industry? Share your views and experiences on this topic below.
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Frequently asked Questions
1. What is the significance of the changes in the stablecoin market, particularly Tether getting a new CEO and USDR decoupling?
Answer: The changes in the stablecoin market, such as Tether appointing a new CEO and USDR decoupling, are significant as they represent shifts in leadership and the market dynamics of stablecoins.
2. Who is the new CEO of Tether and what are their qualifications?
Answer: The new CEO of Tether is yet to be announced. However, Tether is known for selecting experienced professionals with extensive backgrounds in finance and cryptocurrency to lead their organization.
3. How might the appointment of a new CEO impact Tether’s operations and the stablecoin market as a whole?
Answer: The appointment of a new CEO can bring fresh perspectives and strategies to Tether, potentially influencing the company’s operations. This change may also affect the stablecoin market by introducing new initiatives or strengthening market trust in Tether.
4. What does it mean for USDR to “decouple”?
Answer: When a stablecoin decouples, it means that its value is no longer directly tied to the value of a specific asset, such as the U.S. dollar. This decoupling can occur due to various factors, potentially affecting the stability and reliability of the stablecoin.
5. How might the decoupling of USDR impact its market value and investor confidence?
Answer: The decoupling of USDR can have significant effects on its market value and investor confidence. Investors may become cautious due to increased volatility and uncertainty regarding the stablecoin’s value, potentially leading to a decline in market demand.
6. Are stablecoins like Tether and USDR still reliable investment options after these market changes?
Answer: Despite the market changes and the impact they may have, stablecoins like Tether and USDR continue to be recognized as relatively stable investment options. However, investors should conduct thorough research and consider the potential risks associated with these stablecoins.
7. Is it advisable to monitor the stablecoin market closely in light of these changes?
Answer: Yes, it is advisable to closely monitor the stablecoin market, especially in light of changes like Tether’s new CEO and USDR’s decoupling. Staying informed about market developments can help investors make informed decisions and adapt their strategies accordingly.