Why should Stabil coins go against the nature?
Although stable coins in the market are designed to trade 1 to 1 with fiat, we see that prices between these crypto currencies are differentiated in the crypto markets.
Some US dollar crypto coins are traded at significantly higher or significantly lower, reflecting their perceptions of the relative risks of investors.
Stable coins usually serve as a bridge for Bitcoin and altcoin
Given that stable coins are often used as a transition for investors who want to buy Bitcoin or other crypto coins, these premium and discounted prices mean that customers will not pay the market price of Bitcoin listed on a particular stock exchange or data platform.
This new and more distinctive valuations began Monday morning. The best known stable coin, Tether (USDT), broke its stability and dropped to about $ 0.87. As the price approached $ 1 during the next day, market capitalization also fell significantly. This is an important situation that shows that Tether has withdrawn from circulation.
Tether failed to fund the market and its price fell below $ 1
In fact, based on the data compiled with CoinMarketCap, the market sees USDT as the most risky stable asset. Because Tether pays less than a dollar for each buck. At the time of writing, the token was traded at about $ 0.98.
This decline may reflect long-standing suspicions that the issuer, known as Tether LLC, has enough money to fully recover its tokens. The company, which has close ties with the crypto bazaar Bitfinex, has long stated that they have fully booked. However, it is known that there is no independent audit.
Gemini Dollar (GUSD) saw $ 1.19
On the other hand, Gemini Dollar (GUSD), which is supported by the Gemini Stock Exchange of Winklevoss brothers, stands for price climbing. GUSD saw the highest level of all time, up to $ 1.19. It is currently trading at $ 1.02.
Other important stable coins, the USD / Coin (USDC) marketed by the Circle, TrueUSD issued by TrustToken and Paxos Standard Dollar (PAX), issued by Paxos, are similarly traded above $ 1. However, none of them reached the level reached by GUSD.
In particular, the contrast between GUSD and PAX prices is further emphasized by the volume of each token in circulation. Paxos has announced that more than 50 million token was released on Monday night, while GUSD’s supply is much lower.
According to stable coins, purchasing power occurred as follows
As a result of new risk premiums, the amount an investor pays for a Bitcoin differs depending on which stable coin is used. Buying a Bitcoin at USDT at some point on Tuesday was about $ 700 more expensive than buying a Bitcoin at GUSD.
If we reinforce the situation with an example in order to show its impact in more detail; If an investor bought $ 6.017.93 GUSD, it could buy 1 Bitcoin. On the other hand, in the case of the acquisition of a Bitcoin by TUSD, it would be $ 6,419.72, $ 6,438.74 in the USDC, $ 6,448.70 in the PAX and $ 6,709,16 in the USDT.
By contrast, according to CoinMarketCap, when purchased directly with US dollars, Bitcoin costs $ 6.585.52.
In other words, the acquisition of Bitcoin with USDT seems to be more expensive than any other dollar fixed coin in this list. Conversely, Bitcoin can be bought with GUSD in the cheapest way. This shows that the crypto market generally has more power than the alternative stable coins in the current month.