A recent report shared by Binance Research pictured the rise of USD-collateralized stablecoins, along with the downfall of traditional BTC and ETH-denominated pairs. As a result, the largest cryptocurrency exchange re-evaluated the redefined trading environment, with BTC as the base currency for comparing the liquidity of each stablecoin.
Apart from the obvious BTC/USDT pair, Paxos [PAX] and USD Coin [USDC] exhibited the lowest BTC median and average spreads, with both figures being below 0.09%. Out of the lot, StableUSD [USDS] lagged the most due to its extremely small supply and dependence on a single exchange, which ultimately resulted in lower volumes and higher spreads.
Additionally, the report also focused on the possibility of Tether having greater price volatility, owing to the recent controversy related to its 74% backing by cash. It also detailed the possibility of a new blockchain formation due to the recent Tether and Tron partnership. On a similar note, Binance Research also stated that the upcoming Ontology-PAX partnership will be aimed at in-DApp usage, which will allow greater participation of individuals and institutions in the Ontology decentralized ecosystem.
In what seems to be a recurring trend for stablecoins, the inclusion of multiple trading pairs will eventually mark the end of blockchain agnosticism. As an endnote, Binance Research also spoke about the increasing participation of non-financial institutions such as Facebook and Samsung. These institutions currently possess the user base to disrupt the entire crypto industry, the report said. Using a risk-averse approach and with greater incentive to disrupt the payments industry, non-financial companies may help in defining future key growth drivers for both the global payments and the digital asset industry.