BlockBeats news, on December 3, Kaiko noted 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 US elections. Altcoins have also experienced a similar trend, with both ETH and SOL significantly dropping from their annual highs in November. However, this situation began to change following the elections and the victory of President Trump. Notably, the volatility of XRP has surged sharply, with realized volatility rising over 100% for the first time since July 2023.
The recent rise in cryptocurrencies has led to an increased demand for liquidity in stablecoins, both off-chain and on-chain. Since late October, the cost of borrowing USDT and USDC from Binance has more than doubled. While these rates typically fluctuate based on 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 also increased in November.
In recent months, the cumulative volume delta (CVD) for USDT-USD shows that net buying volume has significantly increased since November, indicating that traders are shifting from fiat currency to stablecoins. USDT's dominance 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 skyrocketed tenfold, increasing from $5 million daily in October to over $70 million at the annual peak in early November, before slightly retreating last week. Since 2022, the trading volume has consistently remained above $20 million daily, indicating strong demand. This growth has been primarily driven by the Eurite (EURI) stablecoin and Circle's EURC, which 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 has gained attention since its launch on Binance at the end of August.
