According to Americas Markets Intelligence (AMI), which analyzed the adoption of digital currencies in the region, reported that in our country 12 out of every 100 adults They claim to have bought cryptocurrencies to save or invest.
In order to avoid loss in the current market situation 6 of every 10 Argentines who own cryptocurrencies switched to stablecoins known as “Criptodolar”. One way of investing by Argentines is taking advantage of the protocols of *Decentralized Finance (DEFI). Different protocols such as Compound, Aave, Curve, Alpha Homora and Lido (all audited and high volume protocols) allow you to generate returns on investing in them. That is, those who leave their cryptocurrencies on deposit in this portfolio will obtain a profit with variable returns.
“Risk aversion from the rise in the rate of North American Treasury bonds was present both in crypto assets and in the traditional stock market. This escape from risk has as a counterpoint the acquisition by the Argentines of Stablecoins with parity 1 to 1 against the dollar. That is to say, a neomodality of digital savings in green, that is why it is called Cryptodollars in the local jargon” indicated Damián Di Pace director of the Focus Market Consulting
During this week, one of the TerraUSD stablecoins that operates under the acronym UST failed to maintain the 1:1 parity against the dollar, falling by up to 60%. However, other stablecoins such as Tether (USDT), USD Coin (USDC) maintain their parity because for each token there is a fiduciary dollar or as in the case of DAI that is backed by crypto such as ETH (Ethereum). In the case of UST, it is tied to the Blockchain TERRA whose Native Token is LUNA. This protocol has a decentralized automatic arbitrage and stabilization trading between the value of LUNA within TERRA and UST stablecoin tied to that arbitrage. When LUNA fell more than 60%, it found no real support to maintain parity against UST due to the collapse of its value. That is, there were not enough LUNA to maintain the UST parity against the dollar.
What are the best performing stablecoins
- UST was the top performing crypto-asset with 18%.
- DAI: 10&
- TOD: 8.87%
- SUN: 7%
- MATIC: 6%
- ADA: 5.33%
- ETH: 4.15%
- BNB: 4%
- BTC: 3%
Now if we compare all the returns presented before with traditional assets in a month, we see that letting TOKEN yield as DAI with 10% and DOT 8.87%, as the TOP 2 best investments in a month because the performance of UST It has not been such due to the fall of its maximum in the parity 1 to 1 against the dollar. Even those who are hedged in USDT or USDC also get returns without volatility.
“Faced with the falls to maintain their parity in dollar value, the stablecoins had to increase their backing in cryptocurrencies, dollar cash plus bills and certificates to balance the market. For their part, the Argentines who leave the cryptocurrencies with the highest capitalization in the market switched to stablecoin for the purpose of obtaining profits on those placements that have achieved returns above 6% on average. This type of investment has beaten other species such as the official dollar, parallel, cedars or merval in the local market,” said Di Pace .
During the month of April, the top 10 cryptocurrencies with the largest market capitalization (total market value of the circulating supply of a Cryptocurrency, is analogous to referring to the free float capitalization in the stock market), we see that Avalanche had the biggest drop with -41%, followed by Polygon with -38.5%, Solana -36.7%, Cardano -35.3%, Polkadot -34.1%, XRP -29%, Terra -25.9%, Ethereum -20.9%, Bitcoin -18.5% and BinanceCoin -15.4%
“The trade of the Argentine investor goes through the following decisions. Staying in pesos is an assured loss. Those who own cryptocurrencies are evaluating if the current support is a trend. While they leave the risk with cryptodollars and placed to yield in DEFI as are the Stablecoin ” the analyst concluded.
Source: Ambito
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