The exchange rate volatility It is also reflected in the crypto world, where stablecoins -popularly known as crypto-dollar They gain ground and prominence in the final stretch towards this Sunday’s elections.
The purchase of stablecoins grows
From Lemon they explained to Scope that although “in recent weeks, the total volume of crypto operations (buying, selling and swap) remained within usual levels,” they noted a “exception” on October 1, when they registered “a peak with more than 50% above an average day”.
They added that “in terms of volume distribution: 54% corresponded to stablecoins“and that within that segment, “66% of the volume was allocated to saleswith a crypto dollar close to $1,500.”
In Goodbit proposed a scenario similar to Lemon’s: “We noticed an increase in the volume traded with dollarized assets – mainly in stablecoins (USDT and USDC) and in the crypto dollar 24/7 (quotes 24 hours a day, even on weekends) – since the beginning of october“.
Curls, gaps and arbitrations
consulted by Scope Regarding the reason behind this phenomenon, Buenbit explained that “it coincides with a context of greater exchange rate volatility and widening of the gaps between the different types of dollarwhich prompted many users to look for more efficient alternatives to operate.”
In that scenario, they stated that “The crypto dollar maintains a sales value significantly higher than the official onearound 50 pesos more per dollar, and that at certain times reached differences of up to 80 pesos per dollar.”
It was a context that “led many users to transfer funds from the banking system” to the platform, with the aim of “get better conversion valuewithout operational or schedule restrictions”.
However, this situation is not uniform within the platforms. From Cocos CapitalFor example, they stated to this medium that “You couldn’t make that curl, you could only buy crypto with pesos”. And they clarified that only this Thursday they enabled operations between cryptocurrencies with dollars. “It’s too early to draw conclusions”they added.
How the curler works
The operation of the curler, a colloquial name for financial arbitration, has two alternatives when using the crypto dollar. In the first, Dollars are acquired and immediately exchanged for stablecoins.
They are then resold for pesos at the market exchange rate, keeping the profit. gap that exists between the purchase price of the official dollar and the sale price of the stablecoin.
In the second alternative, a similar operation is carried out, but between stablecoins that are sold at different values on different exchanges, a more dynamic situation and, normally, with less profit margin.
For its part, Lucas PosadaCEO and co-founder of Takenos, explained to this medium that “in the last month alone, more than 3,000 new people joined Takenos, reflecting exponential growth in the use of the platform.”
Source: Ambito
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