Intriguing things are happening in the ever-popular world of stablecoins. Two of the most significant pegged currencies, BUSD and USDT, note long-term lows for transaction activity. That is remarkable, given the bullish momentum most markets appear to be in today.
BUSD Transfers Drop Hard
Even though BUSD has become one of the more popular stablecoins in the crypto world, it seems momentum is fleeting. That is not entirely abnormal, as many things are happening in this space at any given moment. There are several stablecoins on the market today and not all of them can be successful simultaneously.
What is remarkable is how BUSD notes an eight-month low for the number of transfers. Although this is not an abnormal trend, many people expected something different after the recent peak. More specifically, the BUSD volume peaked at over 120 not that long ago. Such numbers now seem lightyears away, though, unless something were to change overnight.
Ever since then, however, the momentum has turned bearish for this currency. It doesn’t necessarily indicate a decline in popularity or overall momentum, as BUSD isn’t the only stablecoin with such a downward trend. Most people would assume such a negative trend with bearish crypto markets, yet all major assets seem unexpectedly bullish this weekend.
As the BUSD decline has been ongoing for a while, it will be interesting to see what happens next. The asset is not just a tool for exchanges but also serves DeFi purposes and can be used for any token sale on the Binance Smart Chain, along with BNB. However, even those transactions seem insufficient to push the current metrics higher.
USDT Performs Even Worse
That other significant stablecoin, Tether’s USDT, notes an even worse trend. Its number of transfers is at an 18-month low all of a sudden. Similar to BUSD, the USDT usage trend has been on a steady decline in recent months. That momentum seemingly won’t turn around soon either, although this industry is known for its surprises.
When the leading stablecoin drops off in transactions, there is cause for some concern. Again, none of this appears to influence the overall market momentum today, but it can have some consequences down the line. As neither of these popular stablecoins shows any sign of reversal, the coming months are bound to get rather interesting in the digital asset space.