When fiat currencies such as the United States Dollar (USD) starting to tank; stock market, foreign currencies (Forex), and other investors take flights by redirecting funds to precious metals like gold, copper, silver and others.
What did cryptocurrency investors do when Coronavirus (COVID-19) started to impact the market? Well, they become “stablecoins refugees“.
According to a post on Twitter by @Bloqport, $1.5 billion entered the stablecoin market at the tip of the Coronavirus (COVID-19) pandemic. The new infusion of money into stablecoins is mostly coming from traders selling Bitcoin (BTC), Ethereum (ETH) and various cryptocurrencies.
Market swells, thanks to stablecoins refugees during economic crisis
Fueled by “stablecoins refugees,” market capitalization balloons to a whooping $7+ billion. However, it seems like this is just the beginning. Very few seem to be holding positions in stocks and commodities. Even gold and bitcoin are now victims of pump-and-dump schemes.
Tether (USDT), TrueUSD (TUSD) and USD Coin (USDC) are amongst a handful of stablecoins benefiting from the exodus. They’re currently experiencing exponential growth at the expense of Bitcoin and altcoins.
Stablecoins market capitalization, by the numbers
Moreover, stablecoins’ market capitalization has grown more than 6x over the past couple of years. Only $1 billion were parked in stablecoins in 2027 when it become a thing.
However, that number tripled by 2018 to $3 billion, and $6b by end of January 2020. The new wave can be attributed to stablecoins refugees; investors seeking refuge from crypto market bloodbath caused by the COVID-19 deadly disease.
Re-entry of $7 billion into the cryptocurrency market
As Bloqport stated, $7b worth of stablecoins sitting idle waiting to re-enter the crypto market. At which point depends on how long the Coronavirus panic lasts. But, that much money is certain to move the market drastically upward.
DATA: There is over $7 billion in stable coins sat on exchanges, up $1.5 billion in the last month.
— Bloqport (@Bloqport) March 27, 2020
Bitcoin and the cryptocurrency market as a whole has suffered the most vicious sell-off in its young history. The bloodbath may not yet be over as more investors enter the ever-growing list of stablecoins refugees.
Mathieu is a Information technology professional with over 15 years of experience. He started one of the first bitcoin blogs existed in 2010. He started writing about, investing in bitcoin and promoting the first cryptocurrency when only a few technological savvy people knew about it. Mathieu is a world traveler who enjoys culture, technology, finance, salmon, rice and beans. He’s cool, collected and knows a great deal about blockchain technology.