Fitch Believes Valuation of Stablecoin Market Rises Moderately Amid BTC Rally

Despite BTC’s rally to yearly highs, the stablecoin sector has not seen its full benefit, according to Fitch.

Over the same period, the capitalization of stablecoins rose from $124.66 billion to $128.66 billion, according to CoinGecko.

At the beginning of the year, however, the figure was much higher at $138 billion.

Additionally, daily trading volume for stablecoins declined from $53 billion in March to $28 billion in May.

To address this, experts noted an increase in treasury bills and REPO transactions in USDT collateral of 6 percentage points and 5 percentage points, respectively, in the first quarter, up to 65% and 10%. Similar changes for the reserves of BUSD were also noted.

Those such as the head of the Fed, Jerome Powell, and Berenberg experts have expressed concerns, calling for the regulation of stablecoins.

To this end, the US Congress presented the third version of a document to the SEC, outlining the future requirements for the issuing of stablecoins, with the Fed as its regulator.