CoinShares Research Director: Stablecoin trading volume surged last year, mainly due to the Federal Reserve’s sharp interest rate hikes

James Butterfill, director of research at crypto asset management company CoinShares, said that investors’ appetite for stablecoins has a lot to do with the U.S. dollar, because the face value is always calculated in U.S. dollars. The trading volume of stablecoins rose sharply last year, mainly due to the Federal Reserve’s sharp interest rate hikes, which stimulated The dollar surged. In fact, not all stablecoins performed poorly. USDT, which is pegged to the U.S. dollar, is a surprise against the market. The market value of USDT rose to a record high of US$83.8 billion in August. However, affected by the decoupling incident between Terra USD and BUSD last year, USDT and USDC, the world's first and second largest stable currencies, once fell below the level of 1 US dollar last year. At the same time, many small and medium-sized banks in the United States, including SVB, collapsed earlier this year. Risk aversion in the market has increased, and investors have stayed away from virtual currency assets. Dante Disparte, Circle's global head of strategy and chief strategist, said that the global de-risking of the US dollar was caused by the crisis of small and medium-sized banks in the United States that hit confidence. It is expected that the adjustment period of stablecoins will continue. (China Review Press)