In recent weeks, two new cryptocurrencies have been listed on Coinbase, 0x and BAT. Both resulted in predictable pumping and discharges immediately before and a few hours after the announcements. This is no surprise, but the fact that either of these two new quotes is only available for trading in USDC might raise some eyebrows.
Stablecoins to disrupt Bitcoin’s dominance
USD Coin, or USDC, is a dollar-indexed ERC20 stablecoin from Circle and Coinbase. It was designed to compete with Tether who has recently been embroiled in its fair share of controversy. According to the blurb on the website, “CENTER stablecoins are issued by regulated and licensed financial institutions that maintain full reserves of the equivalent fiat currency. Issuers are required to regularly report their reserves in USD, and this information will be made available on request. “
According to Coinmarketcap, USDT’s volume is currently $ 2.2 million with a market cap of $ 134 million, so still far from USDT. Coinbase Pro now uses USDC to facilitate trading on its exchange for U.S. customers. Those in Europe and the UK on regular Coinbase will have Euros and Pounds Sterling respectively. The notable thing now is that the latest newly listed cryptocurrency is ONLY available in USDC and not Bitcoin or fiat as is traditionally the case.
BAT was listed on Coinbase Pro over the weekend and the token predictably pumped 23% after the announcement. It is only available in USDC, however, which could be a sign of things to come when Coinbase lists more cryptocurrencies. The next most likely to be added to the platform are Stellar, Cardano and Zcash according to the company’s blog posts.
Bitcoin has traditionally been the preferred medium for trading altcoins when fiat trading is not available. Some have observed that if the trend continues, Coinbase could try to disrupt Bitcoin’s position as a reserve asset for the crypto space;
The battle for stablecoin supremacy has changed gears over the past month with a new one appearing almost every week. All of these fiat-anchored currencies are slowly weakening Bitcoin’s status as a crypto reserve for trading and hodling, but that may be the intention of Coinbase and other exchanges such as Gemini. At the moment, the majority of BAT trading is done in BTC on Binance, which is 65% of the total, so there is no change yet.
However, if the futures pairs listed on Coinbase and other exchanges are only available in USDC, GUSD or whatever the respective exchange offers, that could be the case. We will have to wait for the next announcement to see if this trend continues, which should not be long.