The cryptocurrency market has possibly been one of the most innovative things to have emerged over the past decade or so, and during the course of that period, it has taken the world by storm.
However, as everyone knows, ecosystems evolve, and that is what has been happening with regards to the cryptocurrency ecosystem as well. Eventually, the establishment of exchanges allowed millions of people to buy and sell cryptocurrencies with a few clicks. It was the brainchild of crypto exchanges to introduce a new digital asset class, which was to be backed by fiat currency and came to be known as a stablecoin.
Stablecoins are Rising
While crypto experts and enthusiasts never really took these coins seriously, it needs to be pointed out that the market for stablecoins is rising. The fact that they are backed by fiat currency makes stablecoins far more stable (hence the name) than other coins. Users can buy a bunch of stablecoins whenever they feel that the market might be getting a bit too volatile. Tether is one of the most popular stablecoins in the crypto space, and over the years, it has grown in popularity as more and more exchanges have started using it as a means to allow seamless trading.
Tether is backed by the United States Dollar, but there are other stablecoins backed by other fiat currencies. For instance, there is the eToro, which is backed by the British Pound, and there is TrueGBP, which was established by TrustToken. More and more crypto enthusiasts and traders are now getting into these kinds of coins in a big way, as exchanges continue to create such coins in order to bring some stability to the market.
However, as the crypto market continues to grow this year, experts believe that the stablecoin ecosystem will also continue to grow.
What do you think about the prospectus of stablecoins?
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