Nate Maddrey, senior research analyst at Coin Metrics, discusses a report on the rise of stablecoins over the last few months that Coin Metrics published in conjunction with Bitstamp. He covers:
- why a stablecoin supply that grew over five years has doubled in the last four months
- why demand has grown, specifically for Tether, especially after Black Thursday
- why that demand caused Tether’s price to rise above $1 post-Black Thursday
- why Tether is the most dominant stablecoin
- how traders were making money off that arbitrage opportunity and why the arbitrage stayed in place so long
- where Tether is popular
- why Tether’s price goes up when the free float supply is high and why it goes down when the free float supply is low
- why the stablecoins have varied in their ability to stay stable and how individual stablecoins have reacted
- which types of users are holding stablecoins and various types of users are doing with it
- why it is that stablecoins appear to have different median exchange values
- and why stablecoins have higher velocity than bitcoin and ether
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Episode links:
Nate Maddrey: https://twitter.com/natemaddrey
Coin Metrics: https://coinmetrics.io
The Rise of Stablecoins report: https://coinmetrics.io/the-rise-of-stablecoins/
