Stablecoins are a type of digital currency that is meant to keep its value. Most of the time, they are linked to something that already exists, like a fiat currency or a commodity. During the so-called “crypto winter” of 2018-2019, when the prices of many cryptocurrencies fell, the use of stablecoins stayed pretty high.
Stablecoins are better than most other digital currencies because they are more stable and predictable. This is one of the things that makes them so well-known. People who want a more stable way to store their money might be more interested in stablecoins than other cryptocurrencies because their value doesn’t change as much. Stablecoins do this because they are linked to a particular asset.
Stablecoins are often used in the world of cryptocurrencies to make transactions easier. This is another reason stablecoins have been used extensively during the crypto winter. Stablecoins are a type of cryptocurrency that makes it easier to move money between different types of cryptocurrency. They are used by a lot of platforms and exchanges. This is because stablecoins are safer and easier to use than other cryptocurrencies. http://immediate-edge.live is the place to go for cryptocurrency trading and investing.
Almost as many ATH as there are stablecoins
Clemente said that the data from Glassnode showed that stablecoin was growing in many places. Even though there was a “crypto winter,” more money was traded on the market than ever before.
The number below from Glassnode shows that the total trading volume of the four most popular stablecoins exceeded $30 billion. When Terra LUNA crashed in May and June, it was the first time in the last year that stablecoin transactions were worth more than $20 billion.
In September and October, it was more than $20 billion, but in October, it was less than $20 billion. On the other hand, because of the recent FTX crisis, it has gone over $30 billion.
More stablecoins will be made. The numbers from Glassnode show that the number of stablecoins in use is also close to a new high. Before Terra caused the market to fall, the total supply had already reached more than $150 billion, which was the most it had ever been. Since then, drops have improved, but there are still over $100 billion.
To put this in perspective, the amount of Binance-backed BUSD went from $18 billion at the beginning of the year to over $22 billion at the end of the same period. At the start of this year, USD Coin (USDC) also went over $50 billion before going down to where it is now. Since then, the number of stablecoin addresses still being used has caught up to what it was in 2021. As of May 2021, there were still more than 150,000 addresses in use.
At the same time, the number of addresses with a balance higher than zero has reached its highest point, which is now over 6 million. Clemente says this is because stablecoins are used to “make better use of capital in crypto” and to give people who don’t have bank accounts access to USD.
Stablecoins have been used as a last resort to protect against the volatile markets in the cryptocurrency world. Even if the cryptocurrency market keeps changing in the near future, stablecoins are likely to remain a vital part of the ecosystem.
One of the essential benefits of stablecoins is that they are stable. Users who want a more stable way to store their money find stablecoins more appealing than other cryptocurrencies because their value doesn’t change much. Stablecoins are tied to a particular asset, so this is the case. During times when the market is uncertain or volatile, this strategy may look especially good.
Stablecoins can be used for many different things, such as storing value and making transactions easier. Stablecoins can also be used to protect against the general volatility of the cryptocurrency market as a whole.