.jpmorgan says it's difficult to see a sustained recovery in crypto prices without stablecoin outflows stopping. By willcanny99
One way of measuring investors' exodus from the crypto ecosystem is the shrinkage of the stablecoin market, JPMorgan said in a research report Wednesday., a type of cryptocurrency whose value is pegged to another asset such as the U.S. dollar, are the equivalent of cash in the crypto world and provide a bridge between fiat currencies and cryptocurrencies, the report said.
, the note said. That compares with less than $30 billion at the start of 2021 and about $5 billion a year before that. Since May, the stablecoin universe has dropped by $41 billion, with just under half of the decline attributed to the demise of Terra. JPMorgan says that excluding Terra, it could be argued that the stablecoin market peaked at around $170 billion at the start of the year, was little changed till May 2022, and has been falling ever since.
The bank says that since May 2022 about $25 billion has actively exited the crypto market via stablecoin redemptions. This outflow of $25 billion looks small relative to the $165 billion that had entered the crypto market via stablecoin creation in 2020 and 2021, “but it would be difficult here to imagine a sustained recovery in crypto prices without the shrinkage of the stablecoin universe stopping.”
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Crypto stablecoin issuer Circle adds Apple Pay supportCryptocurrency stablecoin issuer Circle has added Apple Pay support — Apple’s digital wallet solution — in its bid to speed up crypto adoption.
Read more »
US Sen. Gillibrand Says a Last-Ditch Stablecoin Bill May Still Emerge This Year.SenGillibrand said she’s working with other U.S. senators to get out a last-minute stablecoin bill as the congressional session winds to a close. jesseahamilton reports
Read more »
Circle’s USDC issuance falls 3 billion from Binance stablecoin conversionsEveryone is feeling the squeeze. Circle, the company behind the issuance of USDC, says recent events have caused it to miscalculate its financial projections — referring to the collapse of FTX and a decision by rival exchange Binance.
Read more »
Fitch Ratings: Stablecoins are ... stable againFitch Ratings says stability has returned to the stablecoin market following the collapse of algorithmic stablecoin TerraUSD in May.
Read more »
Tether says it has no exposure to Genesis Global or Gemini EarnTether, operator of the USDT stablecoin, has issued reassurances that it has no exposure to firms that have recently frozen withdrawals, and its reserves remain stable.
Read more »
Fintech firm TrueLayer to power Coinbase payments, eyes stablecoinsTrueLayer is continuing its push into digital assets via the partnership and hinted at its interest in developing a GBP-backed stablecoin.
Read more »