Stablecoins: The Unsung Heroes of Market Mayhem! 💰

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Ah, mesdames et messieurs! What a spectacle we have witnessed in the past 24 hours! The trade war, that grand farce between the US and its international counterparts, has sent the markets into a veritable tailspin! 🎭

Lo and behold! Data from the esteemed sages at IntoTheBlock reveals that the daily usage of stablecoins has soared to dizzying heights, with active addresses reaching a staggering 300,000! And what of the on-chain stablecoin volume, you ask? A princely sum of $72 billion! 💸

Stablecoin Activity Surges

Indeed, this surge marks the highest level of stablecoin activity since the fateful month of February in the year 2025! Investors, in their infinite wisdom, have flocked to the comforting embrace of stablecoins amidst the tempestuous seas of crypto volatility. Analysts, with their knowing nods, are hardly surprised by this pivot, given the recent plummet of cryptocurrency prices. Bitcoin, that once-mighty titan, has tumbled from $81,000 to a mere $74,000, while its companions—ETH, XRP, and SOL—have suffered double-digit losses. Quelle tragédie! 😱

As if the market were a stage, volatility heightened with whispers of a possible 90-day pause in tariffs, sending prices soaring! But alas, a swift clarification from the White House sent them crashing back down, as if they were mere puppets on strings! 🎭

Long And Short Positions Liquidated

Oh, the drama! Market volatility has wreaked havoc on long and short positions, leading to a staggering $200 million in liquidations in just one hour! While the markets may have found a semblance of stability, the overall sentiment remains as gloomy as a rainy day, with the crypto market cap down over 2% in the past 24 hours. And let us not forget the trade war tensions, which show no signs of abating, as countries threaten retaliatory tariffs and import bans against the US. The Crypto Fear & Greed Index sits at a dismal 19, firmly entrenched in the “Extreme Fear” zone! 😨

Stablecoins Register Robust Growth Despite Market Struggles

Yet, amidst this chaos, stablecoins continue to flourish! With a total circulating supply of around $234 billion, they have seen a 13% growth year-to-date, primarily thanks to the rise of USDC and USDT. The stablecoin market is poised for further expansion, as new players enter the fray, including the illustrious Trump family-backed DeFi project, World Liberty Financial (WLFI), which plans to launch the USD1 stablecoin. A grand endeavor indeed! 🎉

Global regulators, in their infinite wisdom, are crafting legal frameworks for stablecoins, a move that experts believe will allow this ecosystem to thrive. Kenya has proposed a bill to regulate stablecoins and crypto, while the US and UK are also getting in on the action. How delightful! However, these measures may cast a shadow on offshore stablecoins like USDT. 😏

The SEC’s Stance On Stablecoins

And now, the pièce de résistance! The United States Securities and Exchange Commission (SEC), in a formal proclamation, has clarified its stance on stablecoins. They have declared that reserve-backed, USD-pegged stablecoins, meeting specific criteria, shall not be deemed securities under existing federal law. A most enlightening statement, indeed! According to the SEC, these “covered stablecoins” must maintain a one-to-one peg with the USD, be redeemable at a fixed rate, and be fully backed by low-risk, liquid assets held in a segregated reserve. Voilà! 🎩

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2025-04-09 16:13