Journal article · 2021

How stable are stablecoins?

Lai T. Hoang, Dirk G. Baur · European Journal of Finance · Taylor & Francis

This paper analyzes the stability of stablecoins and proposes a framework to test for their stability. It finds strong evidence of excess price variations and suggests that stablecoins play a key role in cryptocurrency markets.

Read the source ↗ · DOI

Research questionHow stable are stablecoins?

MethodologyFramework to test stability based on high-frequency data.

Constructsstability of stablecoins; price variations; trading volume

Key findings

There is strong evidence of excess price variations in stablecoins.
Stablecoin returns, volatility, and volumes are highly correlated with Bitcoin time-series.
Stablecoins increase the trading volume of Bitcoin.

Topics: Market Structure & Adoption

Cite this

Lai T. Hoang, Dirk G. Baur (2021). How stable are stablecoins? European Journal of Finance.

BibTeX

@article{hoang2021howstablearestablecoins,
  title = {How stable are stablecoins?},
  author = {Lai T. Hoang and Dirk G. Baur},
  year = {2021},
  institution = {Taylor & Francis},
  journal = {European Journal of Finance},
  doi = {10.1080/1351847x.2021.1949369},
  url = {https://doi.org/10.1080/1351847x.2021.1949369},
  note = {Indexed by Stablecoin Beat},
}

Indexed by Stablecoin Beat — we link to and summarise sources; we do not host copyrighted full text, and summaries are our own. · All research · Methodology