The total supply of stablecoins has posted a significant increase of 94% since early February, The Block reports.
According to the publication's latest research, the total supply of stablecoins has increased from $5.68B to $11B over the past five months. While on May, the figure increased from $9.6B to $11B.
It must be noted Tether, the most popular stablecoin in the market, has registered the largest upturn.
This surge in the number of stablecoins supply has coincided with the global liquidity crisis caused by the coronavirus pandemic.
The researchers who carried out the study say that "it's not immediately clear whether the new supply comes from new demand or whether it is existing money that was already on exchanges and is now being converted into stablecoins."
Stablecoins are cryptos linked to an underlying asset with the aim of reducing the characteristic volatility of cryptocurrencies. Tether is the most popular stablecoin at the moment, linked to the US dollar in an 1:1 ratio.
This type of asset is usually considered as a safe haven in times of high volatility, as they tend to remain unchanged regardless of what happens in the market.
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