Stablecoins and Differences in Their Volatilities

Can stablecoins act as a safe haven for investors in the crypto space? This is one of the most frequently asked question in today’s crypto ecosystem.<br><br>To this aim, the volatilities of different stablecoins with distinguished designs will be compared with those of traditional cryptocurrencies, and between themselves, at different frequencies. As of today’s date, the short term volatility of stable coins is not much represented in literature; investors should be provided with a standardized framework to approach the short-term volatility of stablecoins, as well as a means to select less volatile stable crypto assets over short term time horizons.<br><br>It will be shown that relevant differences are detected in the volatility when the frequency of the analysis changes from 1 to 5, 10, 30 and 60 minutes, and that the promise of stability is not always delivered by all stablecoins.