[The rise of stablecoins: USDT and USDC account for half of cryptocurrency trading volume]
Tether (USDT) and USD Coin (USDC) have reached important milestones in the crypto market, accounting for nearly 50% of major cryptocurrency trading volumes, according to analysis by IntoTheBlock. This shows the importance of stablecoins in the market, bringing stability and liquidity to highly volatile assets such as BTC and ETH.
Stablecoins such as USDT and USDC are backed by fiat currencies and do not experience wild swings like other cryptocurrencies. They are often used as transaction intermediaries to make currency switching more convenient. This has contributed to its increased usage and transaction volume.
Data from IntoTheBlock shows that from the end of 2023 to 2024, the market share of USDT and USDC in trading volume has gradually grown. Many investors use these stablecoins as a vehicle to hold value during times of market instability.
This trend has several important implications for the market:
1. Stablecoins bring much-needed liquidity to the market and help maintain market order.
2. Investors can avoid exposing their funds to the volatility risk of BTC and ETH.
3. Although Tether has faced transparency issues, market confidence continues to grow.
USDT and USDC continue to grow as trading tools in the crypto market, demonstrating a shift in market trading patterns. As regulators pay more and more attention to stablecoins, the crypto market will focus more on stability and liquidity in the future.
