Stablecoins worth $6B to enter crypto markets

• Tether, with a market value of 4.782 billion, is making up for most of the total stablecoins’ value.
• Crypto market analyst says that when the market really starts moving, the money sitting in stablecoins is going to transfer into cryptocurrencies.

Stablecoins worth a whopping $6 billion is seemingly ready to penetrate the crypto market. This encompasses US Dollar-backed Tether, TrueUSD, USD Coin, Paxos Standard, Gemini, DAI, BitUSD, and sUSD. As per Messari’s Stablecoin Index, Tether is making up for most of the total value. At present, the stablecoin boasts a market of 4.782 billion alone. Apart from Tether, other significant contributors include USDC at $454 million and PAX at around $210 million. 

Though Jeremy Allaire of Circle had recently said that stablecoins could eventually transform global finance, the increased usage of most dollar-tied digital assets is still a hedge against the crypto market. When traders are unsure about the direction in which the market will move, they buy the USDT or USDC stablecoins. After they’re convinced, they can decide if they want to buy a crypto asset or stay in the relative safety of stable digital currency. 

Mati Greenspan, the founder of QuantumEconomics.io and cryptocurrency market analyst, says that when the market really starts moving, the money sitting in stablecoins is going to transfer into Bitcoin and other digital currencies. He said:

Nearly $6 billion worth of stable coins ready to move into bitcoin and the alts at a moment’s notice.

As it has happened several times in the past, when Bitcoin starts moving, more traders become interested in the market. This results in increased investment and prices.