CryptoQuant CEO, CryptoQuant, said that the use of stablecoins is increasing due to their expansion.
Ki Young Ju, a CryptoQuant employee, told his 368,500 Twitter followers that stablecoins are exploding in value for other reasons than the trading of digital assets on exchanges.
Data from the on-chain analyst shows Only one out of five stablecoins is used for crypto purchases and sales.
In September 2021 the exchange reserves of stablecoins will exceed $30 billion. By this point I thought the market for stablecoins had grown sufficiently to allow comparisons.
The stablecoins market is worth $166 billion today. It’s mainly for storage and remittances. Only 21% are on exchanges.
Stablecoins are growing in value, however most of it isn’t used on exchanges.
Ki Young Ju notes Stablecoins are gaining popularity around the world as people realize their benefits in moving money across borders.
“Mostly for remittances across all countries. Stablecoin adoption in Africa is crazy as far as I know.”
Ki Young J says BitcoinBTCCryptocurrencies and cryptocurrencies need another source of liquidity to increase prices.
Stablecoins by themselves cannot provide sufficient liquidity to the Bitcoin buy side.
BTC/stablecoin is 6,05. This ratio means BTC reserve are 6 times greater than stablecoins. It’s similar to last year’s all-time record.
ETF (exchange-traded funds) and Coinbase USD liquid liquidity will be critical for the next couple of months.”
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