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How Do Stablecoins Function as a Temporary “Quality” Asset during Extreme Market Stress?

They offer a liquid, non-volatile parking spot for capital within the crypto ecosystem during crashes.
Greeks.Live28.10.25

How Do Stablecoins Function as a Temporary “Quality” Asset during Extreme Market Stress?

Stablecoins, primarily USD-pegged ones like USDT or USDC, act as a safe haven for crypto-native capital. Traders sell volatile assets (BTC, altcoins) for stablecoins to "park" value and preserve capital without exiting the crypto ecosystem entirely.

This causes a temporary spike in stablecoin trading volume and often a slight premium above their dollar peg on non-USD pairs.

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