E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

This American tech company joins ONDC in major boost to government’s effort to reshape e-commerce landscape

August 9, 2022

91% JUMP! Life insurers’ new premium income rises to Rs 39,079 cr in July 2022

August 9, 2022

AP CFW MLHP Recruitment 2022: Jobs alert! Vacancies notified at cfw.ap.nic.in – How to apply online; know salary

August 9, 2022
Facebook Twitter Instagram
E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
Facebook Twitter Instagram
E Amazings
You are at:Home»Crypto»Holding Stablecoins Was More Profitable Than Fiat in 2022: Report
Crypto

Holding Stablecoins Was More Profitable Than Fiat in 2022: Report

Paul EasterBy Paul EasterJuly 23, 2022No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter Pinterest WhatsApp Email



CryptoQuant – a blockchain analytics firm – has released a report evaluating data around stablecoins and their peg-robustness. It found that holding almost any of the current top stablecoins throughout 2022 was slightly more profitable than holding actual U.S. dollars.

The Slight Stablecoin Premium

According to the report, the historical mean daily closing price for nearly all top stablecoins is slightly above $1.00, based on volume-weighted price closing data spanning back to 2017.

DAI – an Ethereum-based stablecoin backed by a mixture of assets – held a median daily closing price of 40 basis points above $1.00. It proved to hold the top premium among all stables, with USDP and TUSD trading at 35 and 33 basis point premiums, respectively.

“For traders, $BUSD seems the best to hold for a long time because of high close prices and fewer drawdowns,” tweeted CryptoQuant CEO Ki Young Ju regarding the data.

However, the one coin that traded at an overall discount across time was Tether (USDT) – the largest stablecoin by market cap. Tether has also traded at the highest recorded discount among its competitors – a whopping 4%. Meanwhile, USDC (its top competitor) holds an equivalent record for the highest premium at 4%.

“It should be emphasized that most of Tether’s price deviation below $1.00 happened in 2017-2019,” clarifies the report, “and its daily close price has stabilized virtually at US $1.00 since 2020.”

The Most Stable Stablecoin?

The report also analyzes the price deviation patterns of various U.S. dollar-pegged stablecoins over time. Specifically, it measures each coin’s “Peg Robustness” – how much its market price deviates from $1.00 relative to its number of redemptions.

It found that GUSD has the greatest robustness of all stablecoins. That means its price faces little downside volatility even during high-redemption environments.

Meanwhile, USDT had the lowest robustness of all stablecoins. That means its price deviation from $1.00 is high relative to low redemption flows.

As the report explains, a stablecoin is a cryptocurrency that is designed to stay price-pegged to a relatively stable underlying asset. These frequently include fiat currencies but can also include commodities like gold and other financial assets.

At present, the most popular stablecoins, including USDT, USDC, and Binance USD (BUSD) are pegged 1:1 to the U.S. dollar. Typically, these coins maintain their price peg using fully-backed and highly liquid reserves, which stablecoin holders can redeem their tokens for at any time.

The now-defunct TerraUSD (UST) attempted an alternative model whereby the token was backed by LUNA – a highly volatile cryptocurrency. However, the model proved unstable when placed under pressure, with both coins collapsing to zero in May.

Of the current top 3, both Circle and Paxos have clarified in recent attestations that their USDC and BUSD reserves are fully backed by cash and U.S. treasuries. That only leaves Tether left to publish an equivalent Q2 report.

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.





Source link

Paul Easter

Related Posts

Vitalik Outs Himself as Having Used Tornado Cash

By Paul EasterAugust 9, 2022

Earn Rewards Through Crypto’s Piggy Bank

By Paul EasterAugust 9, 2022

Tether Announces Support for Ethereum Proof of Stake Transition

By Paul EasterAugust 9, 2022

Crypto Prices Found a Floor Because of Ethereum’s Merge, JPM Says

By Paul EasterAugust 9, 2022
Add A Comment

Comments are closed.

Our Picks

This American tech company joins ONDC in major boost to government’s effort to reshape e-commerce landscape

By Paul EasterAugust 9, 2022

91% JUMP! Life insurers’ new premium income rises to Rs 39,079 cr in July 2022

By Paul EasterAugust 9, 2022

AP CFW MLHP Recruitment 2022: Jobs alert! Vacancies notified at cfw.ap.nic.in – How to apply online; know salary

By Paul EasterAugust 9, 2022
Recent Posts
  • This American tech company joins ONDC in major boost to government’s effort to reshape e-commerce landscape August 9, 2022
  • 91% JUMP! Life insurers’ new premium income rises to Rs 39,079 cr in July 2022 August 9, 2022
  • AP CFW MLHP Recruitment 2022: Jobs alert! Vacancies notified at cfw.ap.nic.in – How to apply online; know salary August 9, 2022
  • Student Competition Badge Bears Custom Silicon August 9, 2022
  • Vitalik Outs Himself as Having Used Tornado Cash August 9, 2022
  • This company plans offline presence expansion; to hire 1100 people August 9, 2022
  • Earn Rewards Through Crypto’s Piggy Bank August 9, 2022
Archives
  • August 2022
  • July 2022
  • June 2022
Facebook Twitter Instagram Pinterest TikTok
  • Home
© 2022 E Amazings - All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.