European Securities and Markets Authority: 70% to 80% of secondary crypto market transactions occur between cryptocurrencies and stablecoins

According to the latest analysis of crypto asset market structure by the European Securities and Markets Authority (ESMA), approximately 70% to 80% of secondary market transactions occur between crypto assets and stablecoins and do not involve fiat currencies. While this often happens, the ESMA report suggests that during periods of strong growth, transactions between cryptocurrencies and stablecoins often give way to crypto-to-cryptocurrency transactions other than stablecoins. The report supports this theory by pointing to a surge in crypto-to-cryptocurrency trading and a decline in crypto-to-stablecoin trading in 2020 and 2021. A similar trend was seen in the second half of 2023. In addition, the ESMA report notes that the growth of crypto transactions involving fiat currencies may indicate investors' "increased demand for cash or risk-averse behavior," and although the US dollar is the most used fiat currency by investors when trading, the use of the Korean won is also growing significantly. (Bitcoin.com)