The stablecoins existing in the world have doubled their amount to 12 billion, following the so-called Black Thursday (March 12) when markets experienced a 50% crypto price drop.
A recent study by Coin Metrics, also supported by Bitstamp, found that it only took a four-month period from March 12 to July 12 for the number of existing stablecoins to be doubled, adding 6 billion for the mentioned period.
It took more than 5 years for the global supply to reach the first 6 billion.
The report highlights that the 2020 Black Thursday event led to a large-scale sell-off on equity markets around the world for fears of COVID-19. For holders of crypto assets, stablecoins turned into a sanctuary, which in turn, spiked demand.
The data shows that only two weeks after the event were issued over 800 million USDT_ETH. In comparison, about 740 million USDT_ETH had entered circulation from January 1 to March 11.
Moreover, another stablecoin registered an increase by over 2 billion from Black Thursday to the end of June. This is USDT_TRX.
The report suggests that addresses with at $1 million worth of USDT_ETH account for more than 4.35 billion of the total global supply. On the other hand, addresses with $1,000 or less amount to a tiny share of the supply overall.
Coin Metrics explains that crypto exchanges likely make up a large number of the addresses holding more than $1 million in USDT_ETH and other assets.
Tether (USDT) dominates the vast majority of stablecoin supply and trade volume.
