NYDIG: The total issuance of stablecoins surged after the US election, indicating that new funds are pouring into buying BTC

NYDIG recently looked at the fundamentals of the Bitcoin and cryptocurrency market rally, noting that funding rates for BTC perpetual swap contracts jumped to “highs not seen since the peak of the ETF-fueled rally in March.” Notably, as BTC prices hovered around $90,000, funding rates “moderated somewhat,” and while not “persistently positive” as they were during the March rally, they remained “above historical averages.” Additionally, the report noted that stablecoins are an important way for investors to “convert cash into cryptocurrencies, especially offshore cryptocurrencies.” After the election, the total stablecoin circulation “increased significantly by $6.2 billion.” This suggests that new money “flowed in from the OTC market to purchase digital assets such as Bitcoin.” The report also stated that most stablecoin issuance "comes from USDT rather than USDC, as USDT is the main quote currency on offshore exchanges. Onshore trading venues tend to rely on the US dollar as the quote currency, transferring US dollars to exchanges through traditional banking channels (ACH, wire transfers)." As cryptocurrency prices rise and demand for stablecoins grows, USDT prices "have now turned from a discount to a premium", which once again shows that investors have increased demand for the digital asset ecosystem. (Crowdfund Insider)