First Digital USD stablecoin pairs accounted for 38% of total spot trading volume on Binance. Why is there so much interest in this stablecoin? And could it have an impact on USDT?
Interest in stablecoins may be higher this year due to the action that the Federal Reserve is ready to take going forward. If the Fed cuts rates, the high returns of the digital asset industry will bring in new customers. That would be a natural development.
Additional support for the stablecoin segment could also come from expanding the infrastructure of the cryptocurrency market, which would make this area more user-friendly, as well as the introduction of extremely clear and transparent regulations. There are many issues at play here, but the clearer the supervisory processes, the easier it is to use financial mechanisms.
Institutional investors could give the stablecoin segment a boost in 2024 as arge players could use stablecoins for settlements.