The cryptocurrency market is seeing a shift in trading volumes from fiat currencies to stablecoins, according to institutional cryptocurrency market data provider Kaiko. Its report states that on centralized exchanges, stablecoins represent 78% of all trades, while fiat currencies account for just 19%. The decline in fiat currency trading is most evident in the United States dollar, whose market share dropped from 69% to 47% in just one year.
Declining US Dollar dominance Source: Kaiko
The report highlights Bitcoin’s strong momentum, which has continued to push its price past the $28,000 mark. In fact, the trading volume of cryptocurrencies hit a four-month high on March 14th, reaching $51 billion, according to data from 18 of the most liquid crypto exchanges. The Korean Won is the second most popular fiat-denominated trade currency, representing 39% of all trades on centralized exchanges.