Stablecoins play an important role in the cryptocurrency market, but recent discussions about USDT and USDC have attracted some attention.
As one of the earliest stablecoins, USDT is not only widely used in cryptocurrency transactions, but also in foreign trade settlement, x-betting and x-money.
With the rise of USDC, some people have begun to pay attention to the exchange rate between USDC and USDT. Once the USDC/USDT exchange rate exceeds 1, it means that funds are leaving the cryptocurrency market and turning to the more stable US dollar.
Observing the transaction volume of the USDC/USDT trading pair on Binance, it can be found that it is relatively low. This means that a large amount of USDT is exchanged for USDC, and then left the market to become US dollars.
According to data, at present, at least $100-300 million worth of funds have left the market within 24 hours, which is also one of the reasons for the decline in cryptocurrency market prices.
As retail investors, we need to learn to get information from data. When the growth rate of the total amount of stablecoins decreases, it means that the market may enter a downward trend. Therefore, timely attention to the flow of stablecoins is crucial for investment decisions. Coin Circle Super Topic Blockchain Super Topic
In the cryptocurrency market, the use of stablecoins is not only to avoid risks, but also to keep the value of assets stable when the market fluctuates. Therefore, observing and analyzing the behavior of stablecoins will help us better understand the market trend and make more informed investment decisions.
