The recent outbreak of Covid-19 has turned the whole financial system upside down. Markets crashed in Europe, cryptocurrency prices declined rapidly, and economics around the world were severely affected.
However, the recent decline in cryptocurrencies has prompted many stablecoins to rise in the market cap ranking; six cryptocurrencies have risen to be in the top 50.
While most of the cryptocurrencies have their market capitalization significantly diminished in the past month, the slump of the market has a positive impact on stablecoins and pushed them forward in the market rankings.
Right now, six stablecoins are among the top 50 crypto assets.
USDT ranks fourth
The largest stablecoin by capitalization, Tether (USDT), is currently the fourth largest cryptocurrency with a market capitalization of $4.66 billion. In spite of the USDT's total market cap rising just 0.5% in four weeks, Tether has moved up in the list since ranking seventh by a cap on February 15.
However, due to the fall in the prices of the assets with which the USDT is traded, the volume of Tether has fallen 20%, from USD 48,000 million to USD 60,000 million in the same period.
Stablecoins become more effective than cryptocurrency
Amid recent events, stablecoins manage to be stable despite coronavirus. The gambling industry apparently tries to adopt it as a way of payment to its services alongside cryptocurrency. They are using stablecoins because they provide more stability, security, and decentralization, hence making it favorable for customers. Playamo casino online looks forward to pioneering this trend and a representative of this brand Russell Biehn declared the casino ‘would thoroughly check all the measures to incorporate stablecoins effectively’. In particular, developers have been massively involved in the project. It is not a surprise at the present moment because stablecoins tend to be more resilient against the economic backlash.
USDC comes in at 17th and was previously at 30th
Circle's USD Coin (USDC) has made significant strides in the past month, going from the 30th virtual currency with a capitalization of $430 million to the 17th, with a market capitalization of $601.5 million today.
Jeremy Allaire, who is the co-founder and CEO of Circle, declared on March 14 that The USDC had increased market demand in the recent period, reaching $658 million in circulation.
He also added It was exciting to see not only the flight to security inside the crypto market but also the demand for top-level USD liquidity for the markets.
As for Tether, USDC's 24-hour volume has fallen sharply by 20%, from $936.5 million four weeks ago to $757 million today.
Other stablecoins grow remarkably
In the previous month, TrueUSD was among the top 50 cryptocurrencies by capitalization. It rose by 25 places from 60th to 35th position for the most substantial crypto assets.
Binance USD, which was started six months ago, has seen an enormous leap forward in the market this month.
From February 16 to March 15, BUSD rose from 243 to 36. BUSD volume has increased as well by 50%, from $78 million to $118 million.
Stablecoin Dai has also involved in the top 50 cryptocurrencies by capitalization, which was very positive for it.