Tethered, or Untethered? On the interplay between stablecoins and major cryptoassets

摘要: Abstract Stablecoins and their leader Tether have been one of the controversial topics cryptomarkets role in price rallies past few years has questioned repeatedly. Using generalized vector autoregressive framework directed spillovers based on forecast error variance decompositions, we find no evidence stablecoins boosting prices other cryptoassets. On contrary, increased issuances come reaction to cryptoassets changes, which suggests they rather reflect increasing demand investing into that gets materialized for “digital fiat”.