As the world is still struggling to draw a balance between the traditional Fiat world and the modern crypto world, Stablecoins seems to be the answer that can bridge the two worlds. And as people are slowly realizing it, the demand for these stablecoins is skyrocketing.
Stablecoins adoption is on the rise
A couple of weeks back, Cryptocurrency firm Blockchain has released a report examining the growth of the stablecoin trend, the differences between the growing number of stablecoins in circulation, and whether they truly work to lower volatility in the market. The report outlined that the adoption of stable coins has been superlative among user as they were less volatile, asset-backed and yes provided the benefits of both the traditional and the modern finance world. It was also a safe haven for crypto enthusiasts and traders to take shelter when the cryptocurrency markets turn volatile. The report stated
“The total market value of all stablecoins is $3 billion, or 1.5% of the total market value of all crypto assets; Tether comprises 93% of the all stablecoin market value”
As far as availability of these coins was concerned the report stated,
“Stablecoins are listed on over 50 different exchanges at present, with Tether featuring the greatest number of total individual exchange listings (at least 46)”
“Stablecoins have had success gaining listings on major exchanges, with eight stablecoins (42% of live coins) featuring one or more Tier-1 exchange listings: Tether (6), TrueUSD (5), SteemDollar (4), NuBits (2), BitBay (2), Gemini (2), Paxos (2), Numins (1), STASIS (1), HelloGold (1)”
This demand has recently forced a lot of crypto exchanges and companies to release their own set of stablecoins so that they can capture a larger chunk of this demand upswing. In the past few months, as many as 10 stable coins have been released and as many as 50 stablecoin projects are in line to be released in next 12 to 18 months. Some of the prominent ones that were released recently are
- Tiberius Coin– issued by Tiberius Group AG—a Swiss asset manager and commodities trader
- LBXPeg– issued by the London Block Exchange (LBX)
- Candy– Issued by Mobicom, Mongolia’s largest telecom player
- Paxos Standard– Issued by Paxos Trust Company,
- Gemini Dollar– issued by Gemini, a Winklevoss twins venture
- USD Coin– issued by Circle Internet Financial Ltd
- CarbonUSD– issued by Carbon
- nUSD– issued by Havven
- Stronghold USD– Issued by IBM in partnership with Stronghold
- GMO Coin- Issued by GMO telecom group in Japan
The crypto industry clearly understands this demand and hence everyone is just getting into race to develop one. This stable coin demand also proves that people are ready to accept cryptocurrencies if they were regulated and less volatile giving them comfort to embrace this new technology. This the reason Binance CEO CZ, tweeted, to bring on more stable coins in reply to the news of new stablecoin coin issued by Japanese conglomerate GMO telecom Group.
More stable coins, please. This is great! https://t.co/tqAcTfXuuS
— CZ Binance (@cz_binance) October 9, 2018
Does this increasing demand in stablecoins a sign that the world is ready to accept cryptocurrencies? Do let us know your views on the same.