In October, the trading value of domestic stablecoins surged, jumping from $3.9 billion to $6.84 billion as Bitcoin prices climbed due to the upcoming U.S. presidential election. This momentum continued into November, with stablecoin transactions reaching approximately $12.9 billion, driven by a significant 36% rise in Bitcoin following Donald Trump’s election. By December 26, stablecoin transactions skyrocketed to $17.4 billion, averaging nearly $673 million per day. The increased investment attractiveness of stablecoins, alongside stricter domestic regulations and lower trading fees, has fueled this explosive growth. Both investors seeking better opportunities and authorities are closely monitoring this trend in stablecoin trading.
Domestic Stablecoin Transactions Surge Amid Bitcoin Boom
In recent months, the domestic stablecoin Market has experienced a significant surge. October marked a turning point, with transaction values leaping from around $3.9 billion in September to an astounding $6.84 billion, nearly doubling in just one month. The primary catalyst for this jump was the soaring price of Bitcoin, which rose by an impressive 22% over the course of October.
The trend continued into November, where stablecoin transactions again doubled, reaching a staggering $12.916 billion. This uptick coincided with another Bitcoin rally, which saw prices increase by 36% after the election of Donald Trump, who has touted himself as a “virtual asset president.”
December has not shown any signs of slowing down. Despite a recent decline in Bitcoin’s price, stablecoin transactions reached $17.396 billion by the 26th of this month, marking yet another record. The average daily trading volume skyrocketed to approximately $673.28 million following the emergency martial law declaration on December 3rd, far surpassing this year’s daily average of $167.23 million.
Two main factors explain this remarkable surge in stablecoin transactions. Firstly, as the dollar gains strength, demand for investments tied to the dollar has surged. Stablecoins, which maintain a peg to the dollar, have become an attractive investment option. Tether, for instance, has grown in value by 8% over the past month.
Secondly, many domestic investors are seeking better investment opportunities abroad due to restrictive regulations within the local Market. Since 2017, excessive regulations have limited the listing autonomy of cryptocurrencies in South Korea. In contrast, global exchanges like Binance and OKX offer more features, including blockchain wallets and lower transaction fees. To compete, domestic exchanges have begun reducing transaction fees for tether, with Upbit leading the way with a mere 0.01% commission, compared to 0.05% for other coins.
As the stablecoin trading volume continues to rise, financial authorities are closely monitoring these developments. With the digital asset landscape rapidly evolving, it’s clear that investors are increasingly turning to stablecoins as a viable and attractive option.
Stay tuned for further updates as the stablecoin Market continues to develop in the coming months.
Tags: Stablecoin, Bitcoin, Cryptocurrency, Investment, Financial Regulations, Tether, Domestic Market
What happened to domestic stablecoin transaction prices in October?
In October, domestic stablecoin transaction prices fell sharply. This means it became cheaper to use these stablecoins for transactions.
Why did the transaction value change?
The change in transaction value was likely due to Market fluctuations and changes in supply and demand for stablecoins during that time.
What are domestic stablecoins?
Domestic stablecoins are digital currencies that are tied to the value of a country’s currency. They are used for transactions and are meant to stay stable in price.
Are stablecoins safe to use?
Yes, stablecoins are generally considered safe as they are designed to maintain a steady value. However, like all investments, they do come with some risks.
Can I use stablecoins for everyday purchases?
Yes, you can use stablecoins for everyday purchases if the business accepts them. They are becoming more popular for transactions online and at some physical stores.
