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28 September 2021

Which stablecoins were actually 'stable' during this week's sudden Bitcoin price crash?

Which stablecoins were actually 'stable' during this week's sudden Bitcoin price crash?


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A sharp sell-off across the cryptocurrency market Tuesday—that saw top tokens like Bitcoin (BTC), Ether (ETH), Cardano (ADA), and Solana (SOL) fall by double-digital percentages—created a venue for stablecoins to prove their worth.

Blockchain analytics service CryptoQuant reported dramatic spikes in the stablecoin transfers as the cryptocurrency market cap fell from $2.38 trillion to $2.103 trillion on Tuesday.

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 1:1 dollar peg despite logging minor price drifts.

Among the top-10 stablecoins that showed minimal average deviation from their one dollar peg included six centralized, two mixed, and two algorithmic projects.

Similarly, Binance exchange's native stablecoin BUSD and MakerDAO's DAI maintain their stability via a dynamic system of Collateralized Debt Positions (CDPs), autonomous feedback mechanisms, and a variety of user incentive structures, was up $0.00244 from its dollar peg. .

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cointelegraph.com
Market data feeds provided by cryptocompare.com
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