Memecoin Craze Causes Drastic Ethereum Trading Drop for Stablecoins

Memecoin Craze Causes Drastic Ethereum Trading Drop for Stablecoins


The memecoin frenzy has disrupted Ethereum stablecoin trading, leading to a significant decline in USDC and Tether’s USDT volumes due to high fees and a shift in trading attention towards memecoins.

The memecoin frenzy earlier these 30 days — which saw active Bitcoin (BTC) users plummet and users flock to Solana (SOL) — appears to be disrupting activity elsewhere, with the volume of Ethereum (ETH) on-chain crypto stablecoin trading these 30 days on track to be the lowest since Dec. 2020.

On-chain trading of USDC has reached only $73.1 Billion so far these 30 days, less than half the $158.9 Billion that changed hands in April, reports by data from The Block.

Nearly $69 Billion of Tether’s USDT has changed so far these 30 days, after seeing volume the previous  30 days of $110.6 billion. 

“It’s likely caused by high  charges on Ethereum (ETH) resulting in a drawback of crypto stablecoin activity,” The Block data research analyst Rebecca Stevens stated, pointing out that most trading attention these 30 days had been focused on memecoins.

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“USDC’s volume relative to USDT’s volume has really fallen off,” Stevens added. “This appears to be a result of the depegging. Its supply has likewise dropped so there’s likewise less USDC to trade.”

The Binance Crypto exchange USD crypto stablecoin has seen a whole lot of decline in volumes since February when minting was stopped, she said. 

Although while the average transaction fee on Ethereum (ETH) has come down after peaking these 30 days on May 11, the 7-day moving average is still well over levels seen earlier this year.

Source

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