All stablecoins supply issued in large quantities!  50% price increase??

All-stablecoins-supply-issued-in-large-quantities-50-price-increase

The characteristics of stablecoin issuance differ from what people usually imagine. Rather than resulting in a sequence of issuance → deposit → price increase, it's been found to have a negative correlation. It's been revealed that the moment when stablecoins contribute most to a price increase is when prices are falling.

Considering the situations of massive issuance after the FTX shock and price declines following massive issuance before the USDC de-pegging in March, it's worth reflecting upon how these events facilitated the ease of use of short positions by major holders.

As for how stablecoins are used, I refer to academic research papers.
The influence of stablecoin issuances on cryptocurrency markets,
The impact of transparent money flows: Effects of stablecoin transfers on the returns and trading volume of Bitcoin,
On the role of stablecoins in cryptoasset pricing dynamics..