Stablecoins, the digital currency that is the talk of the town, are gradually taking over the crypto world as more users and corporations vie for its benefits. Such news doesn’t come as a surprise anymore. As the total value of the world’s 12,333 digital currencies approaches $1.8 trillion, the stablecoin economy has recently grown to $179 billion, or nearly 10% of the total crypto economy. This record has been much quicker to attain compared to last year, where it took around two months to see the transfer volume surpass $150 billion. In 2020, it took nine months to surpass this milestone. As for 2019, it lasted an entire year. What Are Stablecoins? The volatility of tokens has always been one of the major challenges to cryptocurrency investing. Bitcoin, for example, can drastically change in value by the minute. Stablecoins are established to tackle that problem surrounding blockchains; it aims to keep track and match the value of the fiat currency US dollars (USD). Tether (USDT), the first established stablecoin and still the most successful to this day, was merely introduced as a digital token with “a stable price.” This works as the Tether Foundation keeps 1 USD in reserve for every USDT issued, keeping its price stabilized around $1 since each unit of USDT could be redeemed for one of the US dollars in the reserve. USDTUSD trading at 1.00080000 on the daily chart | Source: TradingView.com Related Reading |...
