Report: Traders are shifting from fiat to stablecoins, euro stablecoin trading volume surged tenfold in nearly a month

Odaily Planet Daily reported that Kaiko pointed out in its market analysis that the 60-day realized volatility of BTC has steadily declined over the past decade, reaching a multi-year low before the U.S. elections. Altcoins have also experienced a similar trend, with ETH and SOL both significantly dropping from their annual highs in November. However, this situation began to change since the elections and the victory of President Trump. In particular, the volatility of XRP has surged, with realized volatility rising over 100% for the first time since July 2023. The recent rise in cryptocurrencies has triggered an increased demand for off-chain and on-chain liquidity of stablecoins. Since late October, the cost of borrowing USDT and USDC from Binance has more than doubled. Although these rates typically fluctuate according to market conditions and supply-demand dynamics, this increase indicates a growing demand for leveraged positions in both spot and futures markets. Meanwhile, the market capitalization of stablecoins has also reached an all-time high. Additionally, stablecoin lending rates on Aave V3 have risen in November. In recent months, the cumulative trading volume delta (CVD) of USDT-USD shows that net buying has significantly increased since November, indicating that traders are shifting from fiat to stablecoins. The dominance of USDT relative to other dollar-backed stablecoins surged from 69% at the beginning of November to a 13-month high of 86% on November 26, before retreating to 80% last week. In the past month, the trading volume of euro-backed stablecoins surged tenfold, rising from $5 million per day in October to over $70 million at the annual high in early November, with a slight decline last week. Since 2022, trading volume has consistently remained above $20 million per day, indicating strong demand. This growth is primarily driven by the Eurite (EURI) stablecoin and Circle's EURC, which together accounted for over 90% of the total trading volume in November. While EURC remains the market leader with about 50% market share, the MiCA-compliant stablecoin EURI gained attention after launching on Binance at the end of August.