The cryptocurrency industry, including the leading token, Bitcoin, has been experiencing a slump for the past months. One way for individuals to potentially mitigate losses in their crypto portfolio is to swap coins using decentralized exchanges.
The downswings were also followed by the decline of the top altcoins in the market, such as Cardano, Polygon, Solana, Dogecoin, and Shiba Inu, among others. The market, in general, has seen a decline beyond the stock market and other investments.
Following the FTX collapse and the BlockFi bankruptcy, the DeFi and crypto industry are at their lowest level during the year’s final month.
Will this be a loss of hope for the long-term hodlers? Some have even specified that this crypto crisis will be the next Terra LUNA saga, where many investors lose their funds.
Stablecoins Aggregate Volume at Its Highest
By definition, stablecoins are cryptocurrencies that are pegged to fiat currency like USD or the value of another asset such as commodities or financial instruments like gold.
In the cryptocurrency industry, stablecoins aim to offer an alternative to high-volatility cryptos such as Bitcoin and Ethereum.
However, with the crypto winter, do stablecoins still commits to their representation of being stable?
According to Glassnode, a blockchain data resource, the top four stablecoins (DAI, USDT, USDC, and BUSD) have surpassed the USD30 billion aggregate volume, marking its all-time high despite the crypto winter.
With the data from Glassnode, stablecoins’ aggregate volume had its major surge between May and June, with over USD20 billion following the Tera LUNA collapse.
Although it dropped below USD20 billion in October, the recent FTX crash pulled it through USD30 billion.
Stablecoins Aggregate Supply Close to ATH
Based on Glassnode’s data, the aggregate supply of stablecoins was also close to its all-time high before the Terra LUNA market crash, back then, was up to USD 150 billion.
Although the slump started after the crash, the supply is still over USD100 billion. BUSD started the year at USD18 billion, and its supply now is over USD22 billion.
The USDC supply also hit the USD50 billion mark before dropping to over USD43 billion, while USDT and DAI levels were at USD65 billion and USD5 billion, respectively.
Stablecoins Active Addresses Increased
In May 2021, the stablecoins active addresses reached an all-time high with over 150,000 aggregate addresses.
It was unstable for several months, down to over 70,000, until it kept increasing to over 120,000 after the fall of Tera and FTX.
All the data collected from Glassnode sums up all the reports from the top four stablecoins: USDT, USDC, BUSD, and DAI.
Reasons for Stablecoin Spike
With all this data, experts believe that the increase of activities in stablecoins, despite the crypto winter, accounts for the use cases of stablecoins, giving access to USD even for those without banking efficiencies.
Users can’t have ten bank accounts in ten different countries. Thereby, stablecoins are an excellent solution for businesses, fixing the problems of exchanging currencies multiple times.
A user only needs one crypto wallet to transact with different cryptocurrencies at their convenience globally for best cryptocurrency to buy.
Moreover, stablecoins utilize peer-to-peer digital transfers to facilitate faster and simpler transactions, eliminating third-party intermediaries.
Thereby, stablecoins notably reduce the fees that come along with the transactions, transfer time, and potential privacy breaches, which are prone to the traditional central banking system.
The Role of Riverex Towards Stablecoins
Stablecoins are the equivalent of fiat money in the cryptocurrency ecosystem and serve as the market’s source of liquidity.
Therefore, Riverex, one of the industry’s leading decentralized exchanges (DEX), has some valuable features that allow users to earn rewards by trading stablecoins.
Here’s what you can do with stablecoins in the Riverex platform.
- Provide Stablecoin Liquidity
Creating a liquidity pool for stablecoin pairs provides liquidity in most DEXs. The stablecoin liquidity pools enable users to exchange funds directly anytime and anywhere rather than trading them peer-to-peer.
Most notably, providing stablecoin liquidity leverages the provider’s token earnings by getting rewards (Liquidity Provider Tokens) between 0-10% of the trading fees other users pay when swapping one token for another.
- Add Stablecoin Liquidity
Adding liquidity in stablecoin trading pairs minimizes the risk of impermanent loss as the value of both assets floats on a proportional value, which is less volatile (as compared to two volatile asset pairs).
Increasing a liquidity pool grants you between 0-10% commission fees, depending on how much percentage the liquidity provider has set on that particular pool.
- Reinvest Your Profits
You can always collect your reward tokens, swap them for stablecoins, and add more liquidity to your initial trading pair.
Through this, you can gradually increase your capital, maximize your earnings, and significantly boost your profitability.
- Peer-to-Peer Swap
Privately exchange your coins or tokens with stablecoins in the Riverex platform. The platform listed over 260 coins and tokens to swap with.
Currently, the Riverex platform lists the top stablecoins for trading: USDT. BUSD, and DAI.
Swap Coins in a Decentralized Exchange
Get the latest updates on the use cases of stablecoins on the Riverex platform by following our official media channels.