Stablecoin hype does not bring bitcoin up

Since Bitcoin has apparently found a local high, all eyes in the crypto space are currently focused on the stablecoins, digital assets that are tied to a “stable” reserve asset (usually the U-dollar) and secured by it become. Although they have been present in the cryptocurrency industry since 2017 and 2018, stablecoins have become increasingly important for the market in recent months due to the increased volatility. Your offer has increased significantly.

 

$ 9 billion mark exceeded

In fact, according to the latest data from blockchain analytics company Coin Metrics, the value of all stablecoins in circulation has exceeded the $ 9 billion mark for the first time ever. What is particularly interesting about this statistic is that six weeks ago the total value of all stablecoins was $ 6 billion. That’s 50 percent growth within a month and a half, making it clear that it’s not just central banks that are running their money printers at full speed. The usual narrative says that this is crucially bullish for the crypto market; Investors say the increase in stablecoins indicates that the money is ready to flow into Bitcoin, Ethereum, and other cryptocurrencies.However, a new report by economists has suggested that this narrative is not 100 percent true. In a note entitled “Stablecoins don’t inflate crypto markets” published in the VOX economic research blog, Richard K. Lyons and Ganesh Visawanath-Natraj – from UC Berkeley – disagreed or the Warwick Business School – the theory that stablecoins will push Bitcoin “on the sidelines”.