Blockchain analysis company Coin Metrics has plant that while Bitcoin (BTC) was experiencing its biggest daily drop in the last seven years, stablecoins reaped the benefits.

Money Metrics, which conducts analysis of various aspects of cryptocurrency tokens, released their Land of the Network report on March 23. The study focused on how the rest of the crypto market fared during the BTC crash two weeks agone.

According to Coin Metrics data, stablecoins gained marketplace share, spreads on spot and futures markets widened, and transfer fees spiked as people rushed to eolith coins. Crypto holders may have been turning to stablecoins in an attempt to preserve their capital while the market experienced a major downturn.

Many stablecoins make notable gains afterwards crash

As Cointelegraph has reported, stablecoins like Circle'due south USD Coin (USDC) had their marketplace caps reach new all-time highs two days subsequently the downturn. Stablecoin market caps are generally expected to increment after a major crypto marketplace downturn, merely that did not happen in this example.

"Stablecoin transfer value striking an all-fourth dimension loftier amongst the market turmoil. On March 13th, the aggregated transfer of all stablecoins that we track reached a new best high of $444.21M."

Other stablecoins also came out on top. Tether issued on Ethereum (USDT-ETH) had a large increase in market cap, which has reached $3.7 billion as of March 22.

"The dual impact of Bitcoin's USD value halving and massive issuance of stablecoins led to stablecoins' market cap as a per centum of Bitcoin'southward doubling in a matter of days."

Looking at stablecoins in a volatile market

USDC was the winner of the crash in terms of market caps, with a 57% increase over the last thirty days. The stablecoin is currently being used as collateral on MakerDAO later on the cost of their own decentralized stablecoin Dai (DAI) increased to $1.06.

After the coronavirus outbreak started affecting global markets, the supply of stablecoins began growing. If the March 12 crash were whatsoever indication of how the pandemic is affecting the crypto market place, then investors may be looking at stablecoins to provide stability.