Register now for FREE limitless entry to Reuters.com
Register
NEW YORK, Feb 24 (Reuters) – Stablecoins, that are digital tokens pegged to conventional currencies such because the U.S. greenback, held beneficial properties on Thursday within the midst of a sell-off in threat property corresponding to shares and bitcoin after Russia launched a full-scale invasion of Ukraine.
Most stablecoins have been barely increased on the day. Their market capitalization was up 0.3% at $182.5 billion, in line with cryptocurrency knowledge tracker coinmarketcap.com. Its each day buying and selling quantity, although, surged 75% to $108.1 billion.
In distinction, each bitcoin and ether dropped to one-month lows. Bitcoin was final down 3.1% at $36,121 , whereas ether slid 4.1% to $2,475 , following Russia’s invasion.
Register now for FREE limitless entry to Reuters.com
Register
Ukrainian forces battled Russian invaders round almost the entire nation’s perimeter on Thursday after Moscow mounted a mass assault by land, sea and air within the largest assault on a European state since World Struggle Two. read more
“You could have a risk-off atmosphere that is been occurring for months now, and that in some methods has elevated the demand for digital {dollars}, and so we have definitely seen into the tip of final yr and thru as we speak fairly important development in demand for USDC,” mentioned Jeremy Allaire, cofounder and chief government officer of Circle, referring to the stablecoin USD coin, pegged to the U.S. greenback on a 1-to-1 foundation.
The USD Coin was up 0.1% at $1, coinmarketcap knowledge present. A few of the largest stablecoin gainers have been Fei USD, a stablecoin within the decentralized finance house, which was up 1.2%, and Liquity USD, which rose 1.4%.
“Whereas stablecoins have a a lot tighter vary and fewer volatility than different crypto property, in actuality their provide is proscribed,” mentioned Joe DiPasquale, chief government officer at BitBull Capital, which manages crypto funds.
“When there’s a spike in demand for property like USDC on exchanges, it is potential to see their worth go up a fraction of a p.c, as we have seen within the final 24 hours,” he added.
The Russian invasion has dampened the notion that bitcoin is a protected haven, analysts, mentioned. In reality, the world’s largest cryptocurrency has behaved extra like a threat asset. For the reason that starting of the yr when the Russia-Ukraine disaster began percolating, bitcoin has misplaced 22% of its worth towards the greenback.
Buyers have flocked to Treasuries and the U.S. greenback, and even gold, the asset that has been in comparison with bitcoin.
The benchmark U.S. Treasury yield fell about 4 foundation factors to 1.9425% , as costs rose, whereas the greenback index rose to its highest since late June 2020. It was final up 1.2% at 97.382.
Gold surged to its highest since September 2020. It final modified arms at $1,922 , up 0.8%.
Register now for FREE limitless entry to Reuters.com
Register
Reporting by Gertrude Chavez-Dreyfuss and Hannah Lang; modifying by Jonathan Oatis
Our Requirements: The Thomson Reuters Trust Principles.