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Yesterday ended with a decrease in capitalization by 0.56%, but in the ranking of the top 30 cryptocurrencies, most assets showed positive dynamics. Among them are the growth of Stellar (XLM), which added + 5% per session and Bitcoin Cash (BCH), whose value increased by + 4%.
The reason for the rise of XLM on Tuesday was a press release from the largest cryptocurrency exchange in Latin America, Mercado Bitcoin.
Clients of the site got access to the stable usd Coin token issued on the Stellar blockchain. The network provides commissions in a fraction of a cent for transactions with a coin tied to the dollar rate.
The stablecoin was issued by Circle, which publishes weekly reports on the composition of assets in the USDC security fund. The USD Coin token is covered by 30% fiat, 70% of the fund is placed in US Treasury bonds, which eliminates the risks of de-binding, which destroyed the Terra ecosystem in May, where the UST stablecoin circulated.
The strong reaction of investors to the news related to Stellar and Mercado Bitcoin is explained by plans for long-term cooperation between cryptocurrency developers and the exchange. Last week, they began working together on one of the digital real projects, under the patronage of the Central Bank of Brazil. The moment of cooperation launched a growing trend that raised XLM quotes by 25% in the three previous sessions.
The growth of Bitcoin Cash quotes has arbitrage reasons. The largest clone of Bitcoin, as usual, showed a deeper drawdown relative to the main cryptocurrency in May.
Given the similarity of the blockchain code, investors consider BCH a fairly reliable asset, which is relatively widespread on exchanges and retail payments. This gives an excuse for arbitrageurs to “buy” the discrepancy, betting on the alignment of dynamics.
The emergence of trends of stronger growth of BCH relative to BTC can be considered an indirect signal of the future growth of the cryptocurrency market. Otherwise, the transactions of arbitrageurs are doomed to failure. When the market falls, BCH is always ahead of Bitcoin in loss of value.
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