Top stablecoins shed $7B in May as traders redeem tokens en masse
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Re: Top stablecoins shed $7B in May as traders redeem tokens en masse
#2Is $7B a lot?
Isn't Tether's cap alone around 10 times that?
Is this an observable trend or just a small spike of an otherwise generally volatile phenomenon?
Re: Top stablecoins shed $7B in May as traders redeem tokens en masse
#3Do Kwon and the Terra Luna fiasco
Re: Top stablecoins shed $7B in May as traders redeem tokens en masse
#4Clickbait title it seems; USDT and DAI lost some market share while BUSD and USDC have grown more.
> USDC has grown 20% with $10.6 billion more tokens in circulation. BUSD boosted up 22% — representing growth of $4.2 billion. USDT has shed about $4.1 billion, a 5% reduction, while DAI dwindled by 30% — from $8.9 billion to $6.2 billion.
Re: Top stablecoins shed $7B in May as traders redeem tokens en masse
#5No post body was provided.
Re: Top stablecoins shed $7B in May as traders redeem tokens en masse
#6Is $7B a lot? Isn't Tether's cap alone around 10 times that? Is this an observable trend or just a small spike of an otherwise generally volatile phenomenon?
It is potentially the slow start of a run as interest rates rise and lower risk assets offer improved yields versus crypto offerings. Besides Luna, Tether recently required recapitalization, so there is evidence of stress.
No one knows (or would admit publicly if they did, lots of money to be made if you do) what’ll be the linchpin causing a full blown run and a rapid decapitalization of remaining stablecoins. If and when it occurs, it will happen slowly, and then all of a sudden as counterparties race to the exits. Last folks out hold the bags.
https://www.kalzumeus.com/2022/05/20/tether-required-recapit...
Re: Top stablecoins shed $7B in May as traders redeem tokens en masse
#7It seems we have a serious problem with the first generation of cryptocurrencies being mainly a vehicle for scams and otherwise extracting value from gullible people.
From what I've seen so far in most cases "stable-" isn't really stable and currency definitely doesn't work like one.
Or am I just biased by sourcing my information from HN and only seeing the cases where crypto crashes and burns instead of all the successful ones no one here is talking about. Are there any?
Re: Top stablecoins shed $7B in May as traders redeem tokens en masse
#8Is $7B a lot? Isn't Tether's cap alone around 10 times that? Is this an observable trend or just a small spike of an otherwise generally volatile phenomenon?
> Isn't Tether's cap alone around 10 times that?
Tether's cap is not the same as Tether's available liquidity to redeem the token. We don't know what's the limit of withdrawals they can handle in reality.
Re: Top stablecoins shed $7B in May as traders redeem tokens en masse
#9I don't get all the bandwagon hate of crypto on this site.. Sure 99% of crypto schemes are b.s and ponzi. But I like to think in terms of use cases. Currently there is no way to send "money" to someone in another country on the other side of the world, in a decentralized way, and without transaction fees.
Can this problem be solved without crypto? Probably, but currently crypto is looking like the best way to be able to do this.
Re: Top stablecoins shed $7B in May as traders redeem tokens en masse
#10Is $7B a lot? Isn't Tether's cap alone around 10 times that? Is this an observable trend or just a small spike of an otherwise generally volatile phenomenon?
> Isn't Tether's cap alone around 10 times that? Tether's cap is not the same as Tether's available liquidity to redeem the token. We don't know what's the limit of withdrawals they can handle in reality.
> We don't know what's the limit of withdrawals they can handle in reality.
Yes that's a fair point (and it's likely some of the other stablecoins share that problem), but still, isn't $7B a rather tiny portion of the overall stablecoin market cap?