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USDC-USD Trading Pair and Its Impact on Aave and Compound

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USDC-USD Trading Pair and Its Impact on Aave and Compound

It is reported that according to Kaiko’s research data, the trading volume of USDC-USD trading pair hit a record high of US $600 million on March 11, with Kraken as the main trading partner. In addition, Aave and Compound received more than US $2 billion in repayment on March 11, most of which were USDC.

Kaiko: The market depth of Coinbase in March halved, and the currency security fell by 13%

Analysis based on this information:


The trading volume of USDC-USD trading pair had a significant increase on March 11, reaching a record high of US $600 million according to Kaiko’s research data. This increase in trading volume was primarily due to Kraken being the main trading partner. USDC is a stablecoin pegged to the US dollar, which means one USDC is equivalent to one USD, making it less volatile than other cryptocurrencies.

Furthermore, Aave and Compound received more than US $2 billion in repayment on March 11, and most of these were in USDC. These two platforms are decentralized lending and borrowing platforms that require collateral from borrowers in the form of cryptocurrencies. Aave and Compound operate on the blockchain network, using smart contracts to manage the lending and borrowing process. The USDC stablecoin is used as collateral and enables borrowers to receive loans without selling their cryptocurrencies. They instead deposit their crypto assets, and they can receive a portion of its value in USDC, which they can use for any purposes they prefer.

The rise in trading volume for USDC-USD trading pair can be linked to the high demand for stablecoins in the crypto market, especially during periods of market volatility. Stablecoins provide a safe haven for traders to avoid the volatility associated with cryptocurrencies like Bitcoin and Ethereum. In times of market instability, traders often move their funds to stablecoins like USDC to minimize risk and protect their portfolios.

Kraken, being the main trading partner for USDC-USD trading pair, also played a significant role in this increase. As one of the top ten cryptocurrency exchanges in terms of trading volume, Kraken’s position in the market allows for easier access to USDC-USD pairs, as well as increased trust and legitimacy.

In conclusion, the surge in USDC-USD trading pair trading volume and the use of USDC as collateral on platforms like Aave and Compound show the increasing importance of stablecoins in the crypto market. The use of stablecoins provides stability and security to traders, allowing them to operate with more confidence in times of high volatility. The high trading volume in USDC-USD trading pair and the surge in repayment of USDC-based loans also demonstrate the growing confidence in stablecoins in the crypto market.

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