It is indeed to accept the bitter truth that the year 2020 has emerged as a black year for the global economy. During its beginning phase, there have been hopes about virtual currencies as safe-haven assets. No matter volatility of the digital asset market has been badly affected by worldwide pandemic influenced recession, but unpegged cryptocurrencies have shown no results of being clamped down by the existing financial crunch. If you are not much actively following stable coins news, then you have skipped the fact about stablecoins coming up as useful shield from the crypto volatility, and as a comforting payment, assets to gather value. This defines the rising fame of stable coins amid the economic crisis.
When it comes to point the core difference between other crypto coins and stablecoins, then you will know that the latter coins are unpinned by the real-world assets, like Euro and U.S. dollar, or even the items like oil and gold. Living up to their name, the fame of stablecoins will stick to the stability they obtain from the regular financial system and unite it with the benefits that come from thriving blockchain technology. In the existing scenario, crypto enthusiasts are much keen to discover the worth of stablecoins, in becoming a standard use case.
Rise Of Stablecoin Market During The Time Of Economic Crisis
The excess volatility in the crypto market caused by coronavirus-influenced FUD (Fear, Uncertainty, and Doubt), has bred so much of tension among the investors, who now are heading to seek secured ways to save their funds. At this crucial phase, the fame of stablecoins can be observed through being stable and strong, even though other cryptocurrencies are collapsing. These coins have proved their mettle by crossing $90 million, at the time of the existing market crunch.Â
The fame of stablecoins can also be seen with a growth of 30% in the market cap at the end of 2019. The expansion of assets-supported currencies supply by the creators of stablecoins was done to achieve the target of crypto investors and traders, who are keen to protect their digital savings. The rising popularity of stablecoins can also be analyzed through the performance of some of the potential stablecoins like:
USD Coin
Ranking among the list of stable cryptocurrency in 2020 is USD Coin of Coinbase. Although, the initial phase seem much challenging for this stablecoin, observing fall in its market cap. But during the middle weeks of March, the downward waves begin to move in an upward direction with the growth of 51% in the second phase.Â
Reserve
Another example to state the fame of stablecoins is Reserve stablecoin. The Reserve project has been through its examining stage for the latter coin to pit against the Libra in the coming years. The point which sets apart Reserve stablecoin from its competitor coin (Libra) is its main objective to enhance decentralization and transparency. This is how Reserve is achieving much fame in terms of stature and marketing.
Tether
Another potential stablecoin to mention is Tether. The growing popularity of stablecoins is incomplete without it. Ever since its inception in 2014, Tether has become a much valuable asset, both in terms of market capitalization as well as applauding trade volume. During March, both ETH and USDT (Tether) became the dominated pair accounting for all transactions of 62%. Tether, alone, proved its worth by accounting beyond 94% of the trade volume that made it stand besides Bitcoin, by dominating the market.
Libra
Another name that can be mentioned to define the growing fame of stablecoins is Libra. However, this Facebook crypto project has been into controversies in terms of not having a network and its being as cryptocurrency. To deploy its newbie stablecoin in 2020, Facebook is testing its core experimental codes. But before that Libra is showing signs of potential player for its rivals.Â
Conclusion
By analyzing the performance of the stablecoins like Tether, Libra, Reserve, and USD coin, one can easily be convinced with the growing fame of stablecoins at the time of economic crisis, caused by corona pandemic. Investors who became anxious to save their funds, and were eyeing on to found a safe haven during the global upheaval, soon bet on their hopes on stablecoins. However, we would suggest you please ensure the platform in terms of security and authenticity, no matter stablecoins riding high on real market volatility. This may incur heavy losses if anything goes negative. KuCoin, HitBTC, and Huobi, and are some of those reliable crypto exchanges which you can be referred for crypto trading.
