Stablecoins are increasingly reinforcing the dominance of the U.S. dollar worldwide, particularly in regions where access to USD is limited. According to a recent report from Visa, Castle Island Ventures, and Brevan Howard Digital, stablecoin adoption is rising steadily, transcending the typical market fluctuations of cryptocurrencies.
In August alone, stablecoin transaction volumes reached an impressive $461 billion, marking the third-highest monthly total ever recorded. This figure outpaces any volumes seen during the 2021 bull market, despite the broader downturn in the crypto sector over recent months.
The dominance of stablecoins is underscored by their backing predominantly in U.S. dollars, with a staggering 98.97% of all stablecoins linked to USD. Tether (USDT) stands out as a major player, representing 69% of the $170 billion stablecoin market. A survey of 2,541 respondents across Nigeria, India, Indonesia, Turkey, and Brazil revealed that 69% of crypto users in these countries had converted their local currencies into stablecoins. Notably, 39% of respondents used stablecoins for purchases or to send money internationally, with 72% expecting to increase their stablecoin usage in the future.
In particular, stablecoins are gaining traction in Nigeria, where 75% of respondents expressed a very favourable opinion of these digital assets. The report highlights that users prefer stablecoins over traditional USD banking due to their efficiency, yield, and reduced risk of government interference. Nic Carter from Castle Island Ventures noted that these trends suggest a shift towards “crypto-dollarization,” with stablecoins providing a more accessible and stable means of transacting in regions with limited traditional financial infrastructure.
Kraken Loses ASIC Case, Withdraws Fiat Margin Trading Offer
Crypto exchange Kraken has called on Aussie regulators to establish clear rules following a court ruling by the Australian Securities and Investments Commission (ASIC). ASIC’s recent judgement focused on Kraken’s fiat margin trading services, which were found to breach the country’s financial laws. Kraken believes the ruling highlights the need for a comprehensive, modern regulatory framework that can support the growing crypto industry in Australia. Without clear guidance, innovation and business confidence in the sector could suffer. Kraken emphasised that a balanced approach is necessary for crypto businesses to thrive while protecting consumers.
In a blog post earlier this week, Kraken provided context for the ruling, explaining that their service allowed users to trade with borrowed funds, a practice that ASIC argued required a financial services licence. Kraken accepted the court’s decision but expressed concerns that the current regulatory framework is inadequate for the evolving crypto market. The exchange stated that more tailored regulations would not only provide clarity for businesses but also enhance consumer protections.
Kraken’s position is that Australia is falling behind other countries in establishing clear crypto regulations, which could stifle growth and innovation in this sector. The exchange pointed to other nations that have developed comprehensive frameworks, providing both businesses and consumers with confidence. Kraken also urged policymakers to work closely with the crypto industry to develop practical rules that consider the unique aspects of digital assets, as well as their potential for financial inclusion and economic growth.
This case, according to Kraken, serves as a reminder that without clear and flexible regulations, crypto businesses will struggle to navigate the legal landscape, potentially limiting Australia’s competitiveness in the global crypto market. They believe that by engaging with regulators and stakeholders, Australia can create a framework that encourages innovation while ensuring consumer safety.
Kraken’s call for action is part of a broader push within the industry for countries like Australia to modernise their approach to digital assets, creating rules that are clear, fair, and able to keep up with technological advancements.
By aligning with international standards and providing clear, balanced regulations, Kraken hopes that Australia can become a leader in the global crypto economy, rather than risking stagnation due to outdated laws. The exchange remains committed to working within the regulatory framework while advocating for improvements that would benefit the industry as a whole.
Bitcoin Bounces Back, But the Path Forward is Unclear
As predicted last week, Bitcoin found support at the $53,000 USD level, giving us the bounce we were expecting. However, while it’s a positive sign, we’re not out of the grey area just yet. The larger macro resistance level remains at $65,000 USD, which we’ll need to reclaim before any significant momentum can build.
It’s worth keeping in mind that September in the crypto market is historically a tough month. Known for its “red” trend, we may see more sideways action or stagnation in BTC’s price before anything substantial happens.
8 out of the 11 months we have seen a red September… It’s likely that we won’t see any major upward moves until the elections roll around, potentially giving the market a much-needed push toward more bullish territory. Trump needs to secure the spot though.
For now, we remain cautious but hopeful. If Bitcoin can make a run back toward that $65,000 mark, it will be a strong signal that the market is ready to move into new territory.
We however bounced as predicted from last week which gave us a long entry at the (B) marked on the chart below.
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