Which digital currencies are most affected by changes in SONIA rates?

3 answers

• Feb 18, 2022 · 3 years ago
  When it comes to digital currencies, the ones that are most affected by changes in SONIA rates are typically stablecoins. Stablecoins, such as Tether (USDT) and USD Coin (USDC), are designed to maintain a stable value by pegging their price to a specific asset, like the US dollar. As a result, any changes in SONIA rates can have a direct impact on the value of stablecoins, as they are closely tied to traditional fiat currencies.
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• Feb 18, 2022 · 3 years ago
  In addition to stablecoins, cryptocurrencies that have a strong correlation with traditional financial markets are also likely to be influenced by changes in SONIA rates. For example, Bitcoin (BTC) and Ethereum (ETH) are often considered as digital assets that exhibit characteristics of a store of value. As a result, any changes in SONIA rates can affect the overall sentiment in the market, leading to fluctuations in the value of these cryptocurrencies.
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• Feb 18, 2022 · 3 years ago
  From my experience at BYDFi, I've observed that digital currencies listed on our platform are not directly affected by changes in SONIA rates. This is because BYDFi primarily focuses on decentralized finance (DeFi) tokens, which have their own unique market dynamics and are less influenced by traditional financial factors. However, it's important to note that the cryptocurrency market as a whole can still be indirectly impacted by changes in SONIA rates, as it is interconnected and influenced by various external factors.
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