06.12.2021

Which stablecoins were really stable during the cryptocurrency market crash on Tuesday?

The rapid collapse of Bitcoin this week has become a real test for the entire crypto market. The price of the main digital asset fell by 10 thousand dollars during the day, which led to a serious drop in the value of the most popular altcoins.

Even the favorites of August and early September like Ethereum, Cardano and Solana showed significant correction. But how did stablecoins behave here?

Recall that stablecoins are cryptocurrencies pegged to the value of national currencies like the dollar or the euro. That is, the owner of 1,500 USDT can be confident that he can exchange them for 1,500 dollars.

At the same time, there are deviations in the behavior of the stables. During sharp changes in the market, massive purchases or sales of such cryptocurrencies also affect their value, since the price simply does not have time to bounce back.

For example, this is the chart of USDT, the largest by market capitalization, for the last month. Please note that the rate of the coin dropped to 98.56 cents, and also grew to 1.01 dollars.

Tether USDT chart for a month

Were stablecoins stable at the time of the market crash this week? Cointelegraph reporters tried to find the “most durable” stablecoin out of several popular coins in this niche.

Which stablecoin to choose

Stablecoins are especially important for risk mitigation, as buying such coins in the event of a potential collapse of the entire market allows you to save the dollar value of your portfolio. According to the CryptoQuant platform, during the Bitcoin crash on Tuesday, the volume of stablecoins transactions increased significantly. For example, this indicator for the most popular stablecoin Tether USDT increased from $ 4.02 to $ 10.51 billion in just a day.

Another USD Coin increased from $ 3.27 to $ 5.728 billion over the same period. At the same time, the volume of stablecoins in free circulation remained relatively stable, being around $ 67 billion .

Changes in the volume of transactions of stablecoins against the background of the price of Bitcoin

Among the top 10 stablecoins that showed a slight deviation from their fixed price, there were six centralized, two mixed and two algorithmic coins. The screenshot below shows these projects with the average and maximum deviation from the stable price.

Recall that in addition to the usual stablecoins, backed by the bank reserves of their issuers, there are also algorithmic ones. In these projects, a stable price is maintained by automatically increasing or decreasing the supply of coins. An example of such a coin is DAI.

Here is the ranking of stablecoins. The leader here was USDC from Circle, which gave an average deviation of 0.196 cents. At the same time, USDT was trading 0.244 cents on average.

Top 10 stablecoins with the largest price variance

Потенциальные риски краха стейблкоинов уже не раз привлекали внимание известных мировых финансистов. Например, в июле министр финансов США Джэнет Йеллен заявила, что видит огромную необходимость в быстрых действиях правительства относительно регулирования стейблкоинов, иначе эта сфера может стать очень нестабильной.

Министр финансов США Джэнет Йеллен

Эксперты рейтингового агентства Fitch также озвучивали свои опасения относительно коллапса, если вдруг критическая масса держателей Tether захочет обменять свои монеты на реальную валюту. В условиях неполноценного подкрепления монет — напомним, ранее Tether уже оказывалась в центре крупного скандала по этому поводу — цену USDT будет непросто сохранить. А проблемы у настолько крупного проекта могут вызвать нестабильность и других монет на крипторынке.

Хотя отметим, что крипторынок не сталкивался с чем-то подобным за многие годы своего существования. Более того, общая рыночная капитализация стейблкоинов стабильно растёт. Мы уточнили актуальные данные: сейчас в индустрии есть монеты на 123.44 миллиарда долларов. С начала года показатель вырос практически в четыре раза.

График капитализации стейблкоинов

We believe that in general, stablecoins have withstood the events of this week with dignity and have shown real stability. Still, their rate was around the one dollar mark, which means you can rely on them. Accordingly, traders can still protect themselves from large losses using the so-called stop-loss orders – that is, orders to the exchange to sell a certain cryptocurrency in the event the rate falls to a certain level. In this case, the sale of coins can take place in exchange for stablecoins, and this will preserve the value of the portfolio.

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