According to ChainCatcher, Kaiko noted in its market analysis that the recent rise in cryptocurrency has triggered an increase in 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. While these rates typically fluctuate based on market conditions and supply-demand dynamics, this increase indicates a growing demand for leveraged positions in both the spot and futures markets. Meanwhile, the market capitalization of stablecoins has also reached a historical high.
Additionally, the stablecoin lending rates on Aave V3 have also risen in November. The cumulative trading volume delta (CVD) for USDT-USD in recent months shows a significant increase in net purchases since November, indicating that traders are shifting from fiat currency to stablecoins. The dominance of USDT relative to other dollar-backed stablecoins soared from 69% in early November to a 13-month high of 86% on November 26, before dropping back to 80% last week.
Over 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 beginning of November, with a slight pullback last week.
