Stablecoin market cap to exceed $120 billion
Industry News
The overall market capitalization of stablecoins has exceeded the mark of $120 billion. The Messari analyst, Ryan Watkins, highlights that “the explosive growth of stablecoins is explained by the fact these assets are the best means of storing and moving US dollars throughout the world.”
Holders use stablecoins to move their funds between exchanges, as collateral on derivative platforms and DeFi apps. The statistics show that overall trading volumes related to stablecoins reached $1.7 trillion in Q2 2021 (1221% growth compared to Q2 2020).
Furthermore, Watkins outlines the convenience of stablecoins as a payment option. Such assets solve the main problem of cryptocurrencies – stablecoins are not volatile; this is why merchants get the same value as from fiat currencies. They may easily exchange such digital currencies, hold them, send, or receive. Stablecoins are programmable assets, and issuers may launch apps based on stable cryptocurrencies.
Tether heads the ranking of stablecoins. With the capitalization of $68.3 billion, this digital currency is at the 4th position based on the market cap. As for 24h trading volumes, USDT is the market leader ($64.7 billion), while the second-most traded asset, Bitcoin, has the 24h trading volume of $29.6 billion.
The officials call stablecoins a threat to the traditional economic system, as such assets build a bridge between digital currencies and fiat ones, making it possible for newcomers to experience no volatility.
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