In an effort to create a combined stablecoin market crypto exchange Binance has updated its USDT markets.
The world’s top exchange by trade volume, Binance, has been tweaking its stablecoin markets recently. According to an announcement yesterday it has renamed all USDT markets to USDⓈ.It went on to state;
“Binance has renamed the USDT Market (USDT) to now be a combined Stablecoin Market (USDⓈ). This is to support more trading pairs with different stablecoins offered as a base pair. We will make a further announcement soon on the exact pairs to be initially moved or added to this market.” Before clarifying that “USDⓈ is not a new stablecoin: it is the symbol of Binance’s new stablecoin market.”
The announcement comes a couple of weeks after Binance said it would be listing the Coinbase and Circle dollar pegged coin, USDC. It also lists Paxos and TrueUSD, making the total up to four dollar pegged stablecoins. In reality though the exchange would prefer that people use its own native coin, BNB, to trade with.
Stablecoins have become a bit of a point of contention recently. The battle for supremacy and to become the stable standard has heated up while Tether’s woes continue to deepen. USDT has been far from ‘stable’, during the recent crypto crash which started less than two weeks ago. Tether’s price has fluctuated between $1.02 and $0.95 and is currently still trading below a dollar at $0.98. USDT has actually yielded a 7% difference between its highs and lows making it the least stable of the stablecoins over the past fortnight.
USD Coin has ranged from $1.06 to $0.98 and is actually up trending at the moment, holding above a dollar since mid-November. The Paxos Standard Token has spiked between $1.02 and $0.97 and is currently trading at $1.01, and TrueUSD has been very similar.
By combining stablecoins Binance appears to be trying to iron out these differences to create the most stable market for USD pegged crytpocurrencies. There is no actual coin though that combines all of them, just a section on Binance which lists them all together to provide a better glance at stablecoin performance. This will give a trader more oversight on which ones to select and it is likely that Tether will come out the loser, especially if it remains below a dollar for much longer.
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