- The Coronavirus crash of mid-March has resulted in a lot of crypto traders being cautious.
- The dominance of stablecoins is proof that they are waiting for favorable crypto conditions to get back to trading.
- Staking crypto on the various exchanges has provided an alternative to trading and/or storing value in stablecoins.
The Bitcoin (BTC) and crypto market crash of mid-March was one event that not too many traders believed would happen. The majority of Bitcoin enthusiasts believed that the hype surrounding the Bitcoin halving event would provide much-needed immunity for the crypto markets to survive a shake-out in the event of a possible stock market meltdown. However, the tense days of March proved that Bitcoin is highly correlated to the stock markets during times of turmoil.
$8 Billion Locked up in Stablecoins
As with all periods of unexpected volatility, traders and investors quickly hopped on stablecoins to safeguard the value of their holdings in the crypto markets. As a result, Tether (USDT) has continually risen on Coinmarketcap and is currently ranked 4th after BTC, Ethereum (ETH) and XRP. The stablecoin’s market cap currently stands at $6.4 Billion making up 80% of the total value stored in stablecoins. Tether’s dominance has slowly but surely risen due to the uncertainty brought about by the effects of COVID19 on the global economies.
Staking of TRX, KAVA and other Cryptos is Providing a Profitable Alternative
With the world firmly in the thick of a global recession, favorable trading conditions to go LONG in the crypto markets will probably take a while to present themselves. At the time of writing this, flattening the curve of infections is happening but a return to normalcy has been projected to take months and roll over into 2021 with some estimates pushing it to 2022.
Therefore, many savvy crypto investors have discovered that staking is an easier way of storing their crypto holdings while…