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Stablecoins Now Account for 74.6% of Institutional Crypto Trades
A recent report by Finery Markets has revealed a significant shift in the institutional cryptocurrency market, as stablecoins have now accounted for an astonishing 74.6% of all institutional crypto trades.
According to the report, which is based on over 4.1 million trades executed between January and June on its non-custodial trading platform, this surge represents a massive increase from just two years ago, when stablecoins were only responsible for 23% of such transactions.
The report highlights that USDC has seen an extraordinary 29-fold growth in volume, a staggering statistic that can be attributed to the restriction or delisting of its main competitor, USDT, in Europe due to regulatory issues. This development has given USDC a significant advantage in the market.
Furthermore, the data shows that institutional investors are increasingly relying on stablecoins for trading purposes, as they offer a more stable and predictable investment option compared to other cryptocurrencies.
Interestingly, altcoin players such as Cardano, Solana, and XRP have also managed to capture a notable 16.7% share of OTC activity, demonstrating their rising popularity within the institutional space.
The report also warns that the rapid growth in stablecoins may pose a significant risk for investors if these assets lack sufficient secondary market liquidity. This highlights the need for better liquidity support mechanisms and increased regulatory oversight in this space.
In conclusion, this data underscores the growing importance of stablecoins in institutional trading, while also emphasizing the urgent requirement for enhanced vigilance to ensure market stability.
Sources: Finery Markets
Source: crypto-economy.com
