CoinVoice recently learned that Kaiko pointed out in its market analysis that the recent rise in cryptocurrencies has led to increased demand for stablecoin liquidity both off-chain and on-chain. Since late October, the cost of borrowing USDT and USDC from Binance has more than doubled. Although these rates typically fluctuate based on market conditions and supply-demand dynamics, this increase indicates a rising demand for leveraged positions in both the spot and futures markets. Meanwhile, the market capitalization of stablecoins has also reached an all-time high.
Additionally, the stablecoin lending rates on Aave V3 also rose in November. The cumulative trading volume delta (CVD) for USDT-USD in recent months indicates a significant increase in net buying since November, suggesting that traders are shifting from fiat currencies to stablecoins. USDT's dominance over other dollar-backed stablecoins soared from 69% in early November to a 13-month high of 86% on November 26, then declined to 80% last week.
In the past month, the trading volume of euro-backed stablecoins surged tenfold, increasing from $5 million per day in October to an annual peak of over $70 million in early November, followed by a slight decline last week. [Original link]