The aggregate supply of the stablecoin market increased by $8B during the third quarter, almost doubling compared to the previous period. At the end of the second quarter, its value amounted to $11.9B, while on Wednesday it was close to $20B, according to data provided by Coin Metrics. As a comparison with the same period last year, the figure has posted a spectacular increase of 1,200%. Tether's CEO Paolo Ardoino said:
"2020 seems to be the year of stablecoins."
The aggregate supply of the stablecoin market exceeded $10B in May for the first time in history, while at the end of the third quarter, the figure increased to $19.87B.
Ardoino claims the main driver of stablecoins growth during the last quarter has been the "explosion of decentralized finance (DeFi)" as well as the increase in hedge funds and OTC platforms that move assets into the USDT for "faster arbitrage and reactions to market movements."
At the same time, Ardoino has said predicting future trends in the stablecoin space is not easy. However, if we rely on continued demand, he expects these assets to keep rising for at least the next few months.
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