{"id":336817,"date":"2021-09-09T11:00:00","date_gmt":"2021-09-09T08:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/which-stablecoins-were-actually-stable-during-this-weeks-sudden-bitcoin-price-crash\/"},"modified":"2021-09-09T11:00:00","modified_gmt":"2021-09-09T08:00:00","slug":"which-stablecoins-were-actually-stable-during-this-weeks-sudden-bitcoin-price-crash","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/which-stablecoins-were-actually-stable-during-this-weeks-sudden-bitcoin-price-crash\/","title":{"rendered":"# Which stablecoins were actually \u2018stable\u2019 during this week\u2019s sudden Bitcoin price crash?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a35abbc436f5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a35abbc436f5\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/which-stablecoins-were-actually-stable-during-this-weeks-sudden-bitcoin-price-crash\/#Centralized_stablecoin_more_dependable\" >Centralized stablecoin more dependable<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/which-stablecoins-were-actually-stable-during-this-weeks-sudden-bitcoin-price-crash\/#Is_a_stablecoin_collapse_good_for_Bitcoin\" >Is a stablecoin collapse good for Bitcoin?\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Which stablecoins were actually \u2018stable\u2019 during this week\u2019s sudden Bitcoin price crash?  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>A sharp sell-off across the cryptocurrency market on Tuesday \u2014 that saw top tokens Bitcoin (BTC), Ether (ETH), Cardano (ADA) and Solana (SOL) fall by double-digital percentages \u2014 created a venue for stablecoins to prove their worth.<\/p>\n<p>The fixed-price cryptocurrencies offered interim protection to traders from the notorious crypto price volatility. They did so by almost maintaining their one dollar-peg and offering sufficient liquidity to traders who looked for a safety net during the market decline.<\/p>\n<p>Blockchain analytics service CryptoQuant reported dramatic spikes in stablecoin transfers as the cryptocurrency market capitalizati fell from $2.38 trillion to $2.103 trillion on Tuesday. <\/p>\n<p>For instance, Tether (USDT), the leading stablecoin by volume, processed $10.51 billion worth of transactions on Tuesday compared to $4.02 billion on Monday.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/dbb272bf-0999-452f-9c50-066b4ba7f95c.png\"><figcaption style=\"text-align: center;\"><em>The mean of all stablecoins transfer. Source: CryptoQuant<\/em><\/figcaption><\/figure>\n<p>Similarly, the second-largest stablecoin USD Coin (USDC), backed by Circle, reported $5.728 billion worth of transfers on Tuesday versus $3.27 billion in the previous session, logging a 74% spike.<\/p>\n<p>At the same time, the net stablecoin supply in circulation remained relatively idle, around $67 billion, showcasing adequate liquidity against demand even in the face of a brutal crypto market decline. As a result, many top stablecoins maintained their one-to-on dollar peg despite logging minor price drifts.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Centralized_stablecoin_more_dependable\"><\/span>Centralized stablecoin more dependable<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Among the top 10 stablecoins that showed minimal average deviation from their one dollar peg included six centralized, two mixed and two algorithmic projects. <\/p>\n<p>USDC demand pushed its average valuation by about $0.00196 above a dollar, closely followed by Paxos (PAX), which traded $0.00203 above the same peg.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/66a6a976-4566-4d37-b3c7-935d64e73e96.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Top 10 stablecoins ranked according to their average deviation from the U.S. dollar. Source: Larry Engineer&#8217;s stablecoin tracker<\/em><\/figcaption><\/figure>\n<p>Similarly, Binance exchange\u2019s native stablecoin, Binance USD (BUSD), and MakerDAO\u2019s Dai\u00a0maintained their stability via a dynamic system of collateralized debt positions, autonomous feedback mechanisms, and a variety of user incentive structures.\u00a0<\/p>\n<p>Tether\u2019s wider demand across the cryptocurrency spectrum also pushed its average deviation up by $0.00244. <\/p>\n<p><strong><em>Related:\u00a0Tether promises an audit in \u2018months\u2019 as Paxos claims USDT is not a real stablecoin<\/em><\/strong><\/p>\n<p>Meanwhile, TrustToken\u2019s TUSD,\u00a0Stable Universal\u2019s HUSD and Terra\u2019s UST drifted $0.00249\u20130.00385 from their dollar valuation. FRAX and FEI posted a decoupling from their dollar peg by jumping $0.00404 and $0.00474 above it, respectively.<\/p>\n<p>The data snapshot was taken 24 hours after Tuesday\u2019s crypto market crash.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_a_stablecoin_collapse_good_for_Bitcoin\"><\/span>Is a stablecoin collapse good for Bitcoin?\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>But potential stablecoin risks have also attracted the attention of top United States officials, including Treasury Secretary Janet Yellen and Federal Reserve Bank of Boston President Eric Rosengren. <\/p>\n<p>In July, Yellen\u00a0\u201cunderscored the need to act quickly to ensure there is an <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ropriate U.S. regulatory framework in place\u201d\u00a0in a meeting\u00a0with the heads of the Federal Reserve, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.<\/p>\n<p><strong><em>Related:\u00a0Stablecoin growth could affect credit markets, rating agency warns<\/em><\/strong><\/p>\n<p>Meanwhile, Rosengren called Tether a potential challenge to financial stability.<\/p>\n<p>In July, a paper released by Fitch Ratings also noted that collateralized stablecoins could trigger short-term credit market contagion:<\/p>\n<blockquote><p>\u201cA sudden mass redemption of [tether] could affect the stability of short-term credit markets [&#8230;] particularly if associated with wider redemptions of other stablecoins that hold reserves in similar assets.\u201d<\/p><\/blockquote>\n<p>But what could a stablecoin market collapse mean for Bitcoin and similar digital assets? Mike McGlone, the senior commodity strategist at Bloomberg Intelligence, said it would benefit Bitcoin, in particular.<\/p>\n<blockquote><p>\u201cIf the whole market collapse, there is only one safe store of value left: Bitcoin.\u201d<\/p><\/blockquote>\n<p>For more about the potential risk of stablecoins, check out\u00a0Cointelegraph\u2019s latest video report.<\/p>\n<p><iframe loading=\"lazy\" title=\"Stablecoins: How the most stable cryptos could collapse the entire market\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/W14xZHWG85Q?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. 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The fixed-price cryptocurrencies offered&#8230;<\/p>\n","protected":false},"author":1,"featured_media":336818,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDkvYTE3NDQ5YWUtODk0Mi00ZDA1LWI2ZjYtM2QwZjlmYjg4ZGEwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74937,75936,82962,81262,76701,74939,75679,75150,76605,75493,112032,82350,73785,36041],"class_list":["post-336817","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin-price","tag-circle","tag-coinmarketcap","tag-cryptomarket","tag-dai","tag-market-analysis","tag-market-capitalization","tag-market-update","tag-paxos","tag-stablecoin","tag-trueusd","tag-usd-coin","tag-markets","tag-tether"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/336817","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=336817"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/336817\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/336818"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=336817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=336817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=336817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}