Stablecoin quote
Why are most crypto prices quoted in a dollar-pegged token, and what does that choice hide?
In plain words
A stablecoin quote prices an asset in a token designed to stay worth one dollar, rather than in dollars themselves. The ticker shows the token, not the currency. The quoted price therefore reflects both the asset's value and any movement in the token away from its peg.
Why it matters
A reader who assumes a stablecoin quote equals a dollar quote may misread returns and costs. If the token trades below its peg, the asset can appear weaker or stronger than it truly is against actual dollars, and trading costs measured in the token may differ from costs in cash.
In a real week: ETH, week of 5 November 2018
In the week of 5 November 2018, ETH quoted in a dollar-pegged token opened at 212.13 and closed at 212.54, a return of 0.19%. It reached a high of 224.80 on Wednesday 7 November 00:00 UTC and a low of 207.62 on Monday 5 November 17:00 UTC, a range of 8.27%. The close sat in the lower third of that range, at 28.6%, while volume was below its prior 12-week average.
A common mistake
Treating a stablecoin quote as identical to a dollar quote. The token can trade slightly above or below its peg, and that gap enters the price without appearing in the ticker.