Stablecoins Hitting $9 Billion Shows Investors in Crypto Market Are Rattled

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Over the past few weeks, stablecoins, crypto-assets tied backed by a “stable” reserve asset, have become increasingly important to the cryptocurrency market. First, just assets used by the fringe, this subset of altcoins now accounts for a growing percentage of the crypto market’s value. In fact, according to April 20th data from blockchain analytics firm Coin Metrics, the value of all stablecoins in circulation just passed over $9 billion for the first time ever. What’s especially interesting about this stat is six weeks ago, the aggregate value of all stablecoins was $6 billion. The common narrative goes that this is decisively bullish for the crypto market, with many suggesting that the growing value of stablecoins is money being prepared to be thrust into Bitcoin, Ethereum, and other cryptocurrencies. But, this narrative may not be 100% true, with some suggesting the demand for stablecoins is increasing for other reasons that may…

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