According to Odaily Planet Daily, according to the latest analysis of the market structure of crypto assets by the European Securities and Markets Authority (ESMA), about 70% to 80% of secondary market transactions occur between crypto assets and stablecoins, without involving legal tender. Although this often happens, ESMA's report shows that during periods of strong growth, the proportion of transactions between cryptocurrencies and stablecoins is often less than that of currency-to-currency transactions other than stablecoins.
The report supports this theory by pointing to a surge in crypto-to-cryptocurrency trading volumes and a decline in crypto-to-stablecoin trading volumes in 2020 and 2021. A similar trend is seen in the second half of 2023.
Additionally, the ESMA report noted that the growth in crypto transactions involving fiat currencies could indicate an âincreased demand for cash or risk-averse behaviorâ by investors, and that while the U.S. dollar was the most commonly used fiat currency by investors for transactions, the use of the Korean won was also growing significantly.