After the Silvergate crisis, investors turned to stable currencies, and the market value of USDT increased by nearly $600 million

On March 3, it was reported that after the crisis of Silvergate Capital Corp, a cryptofriendly bank, investors were supporting the circulation of stable currency and turning to tokens equivalent to US dollars as cash substitutes. The activities of the two largest stable currencies, the USDT of Tether and the USDC of Circle, rose in India on Friday morning. According to the pricing data of CoinGecko, the 24-hour trading volume of USDT on March 3 was $43.2 billion, compared with $39.9 billion in the previous day, while the trading volume of USDC jumped from $3.4 billion to $4 billion.

Interpretation of this information:

The message above reports that, following the crisis faced by Silvergate Capital Corp in early March, investors are turning to stable currencies and using tokens that are equivalent to the US dollar as cash substitutes. Two of the largest stable currencies, Tether’s USDT and Circle’s USDC, have seen a significant increase in trading volume in India on March 3.

Stable currencies are a type of cryptocurrency that is designed to maintain a stable value, typically pegged to a traditional currency, such as the US dollar. This stability is achieved through various mechanisms, such as backing the currency with fiat currency or commodities. As such, stable currencies are seen as a way to mitigate the volatility that often characterizes cryptocurrencies.

The rise in the trading volume of USDT and USDC can be interpreted as a sign that investors are seeking stability amidst the crisis faced by Silvergate Capital Corp. This bank is known for being friendly towards cryptocurrencies, and its recent troubles may have caused investors to look for alternative ways to hold and transact cryptocurrencies.

Furthermore, the fact that USDT and USDC are being used as cash substitutes suggests that investors are using stable currencies as a way to hold value and make transactions without the need for traditional fiat currency. This could be a sign of growing acceptance and use of cryptocurrencies in everyday transactions.

The increase in trading volume of USDT and USDC is also noteworthy, with USDT seeing a 8.3% increase and USDC seeing a 17.6% increase in 24-hour trading volume. This suggests that these stable currencies are becoming increasingly popular among investors and may continue to gain momentum in the coming months.

Overall, the message above highlights the growing significance of stable currencies in the cryptocurrency landscape, particularly in times of crisis. It also suggests that investors are increasingly turning to cryptocurrencies as a way to hold value and make transactions, pointing towards a possible future where cryptocurrencies become more widely adopted in mainstream transactions.