CoinVoice recently learned that Kaiko pointed out in its market analysis that the recent rise in cryptocurrency 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. While these rates typically fluctuate based on market conditions and supply-demand dynamics, this increase indicates a growing demand for leveraged positions in the spot and futures markets. Meanwhile, the market capitalization of stablecoins has also reached an all-time high.
Additionally, the borrowing rates for stablecoins on Aave V3 also increased in November. Recent months' cumulative trading volume delta (CVD) for USDT-USD shows a significant increase in net buying since November, indicating that traders are shifting from fiat 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 retreating to 80% last week.
In the past month, the trading volume of Euro-backed stablecoins surged tenfold, increasing from $5 million daily in October to an annual peak of over $70 million in early November, before slightly retreating last week. [Original link]