Coin Metrics Says the Impact of Bitcoin and Last Month’s Market Crash is Becoming Clear
The cryptocurrency futures market has been experiencing a shakeup since the cryptocurrency market crash which happened on March 12.
The market crash led to the decision by BitMEX to lose some of its futures marketplace to Binance, says the cryptocurrency intelligence company Coin Metrics.
Reports have it that BitMEX experienced two distributed denial-of-service (DDoS) attacks during the market crash last month. The attacks led to late processing of market orders and 156 accounts sustained losses. Since then, BitMex has lost market volume and open interest shares.
According to Coin Metrics, this favored Binance has it experienced a remarkable increase in trading volume which has risen to about 25%. Coin Metrics said this could have progressive influence across cryptocurrency markets, specifically when we consider the huge impact of BitMEX price discovery.
“Only time will tell if BitMEX is able to recover the lost market share, or if the marketplace is undergoing a true changing of the guard.”
When it comes to stablecoins, Coin Metrics noted their prosperity after the market crash as they gained $1 billion in market capitalization since the beginning of April. The major reason for the increment is because of the issuance of Tether on Ethereum (USDT/ETH), which increased from $4.43 billion to $5.14 billion between April 1 and 19.
Despite launching the majority of stablecoins as ERC-20 tokens, their effect on Ethereum is still contentious. As stablecoin continues to grow, it could lead to increasing demand for Ethereum due to the need of ETH for transaction fees.
Nevertheless, Coin Metrics noted the potential of stablecoins to begin to do what Ethereum is doing in the cryptocurrency domain in the long term; that is, they will provide some of the same functionality. Stablecoins have what it takes to become the store-of-value and medium of exchange because they are not so volatile, says Coin Metrics.