In the history of the cryptocurrency market, stablecoins have played a crucial role in stabilizing traders’ profits. According to the latest crypto market data, stablecoins have a reported valuation of approximately $130.8 billion and a 24-hour trading volume of about $28 billion.
For Further Context: Stablecoin Vs Fiat Currencies: Features, Difference, And Factors.
Stablecoin Denominations
As global crypto regulations increase, stablecoins denominated in different global currencies have emerged. Among the top traded stablecoins are those denominated in the United States dollar, the Euro, and the Japanese Yen, among others. This trend allows traders to hold assets in their preferred currency and avoid fluctuations in value due to currency exchange rates.
Which Stablecoins Are The Whales Accumulating?
According to a study conducted by market intelligence platform Santiment, crypto sharks and whales are accumulating top stable coins like MakerDAO’s DAI. As the crypto market led by Bitcoin ranged around $28k, Santiment noted that large crypto investors increased their rate of stablecoins accumulation. Notably, DAI is a favorite among crypto users who prefer to generate stablecoins on their terms.
“Even with crypto markets rollercoastering in April, top stablecoins like $DAI are being accumulated by sharks & whales. Since $DAI was exchanged for pumping $BTC & $ETH in mid-March, $100k-$10m DAI addresses have added 6.4% of the supply back since.”
Governance by MKR Token Holders
Moreover, a community of MKR token holders governs the Maker protocol and the smart contracts that power DAI stablecoins. This decentralized governance model enables token holders to vote on changes to the protocol, including setting the stability fee and determining the collateralization ratio.
Declining Market
Nevertheless, a recently published report by Glassnode indicated that the stablecoins market has continued to shrink from its peak of around $161 Billion. The decline can partially be attributed to the fall of the Binance-backed BUSD earlier this year. However, the overall stablecoins market remains significant and is essential to the cryptocurrency market’s stability.
