Global Pandemic Is Proving Ground for Stablecoins, Says Circle CEO

Global Pandemic Is Proving Ground for Stablecoins, Says Circle CEO
фото показано с : beincrypto.com

2020-3-15 12:15

In recent weeks, an increasing coronavirus-induced panic has taken its toll on markets around the world. Out of the carnage that has seen tens of billions drained from the cryptocurrency markets, stablecoins are proving themselves popular with investors looking to protect wealth whilst markets slide.

As BeInCrypto recently reported, the dominant stablecoin US Dollar Tether and others enjoyed market capitalization gains as cryptocurrency investors rushed for an exit to fiat amid mass market turmoil. USDC, the US dollar-backed initiative by both Circle and Coinbase, is among the stablecoins currently growing in demand.

The CEO of the project, Jeremy Allaire, says that although the slide in cryptocurrency markets is “not as exciting,” he is encouraged to see “demand for internet dollars” increasing.

Allaire: Coronavirus Pandemic Proves Blockchain Money Is Working

In the last few days of a market selloff, there have been few winners. At its worst point, Bitcoin alone had shed more than $60 billion from its market capitalization in just a matter of hours. In terms of percentage losses, other digital currencies fared even worse.

However, stablecoin projects with their pegs to less volatile currencies – like the US dollar – have seen renewed investor interest during the recent market turmoil. The largest stablecoin, USDT, saw its own market capitalization rise to more than $5 billion.

Similarly, the Circle and Coinbase project USDC also experienced market cap gains. In the Twitter thread below, Circle CEO Jeremy Allaire says such increases in demand are encouraging for the industry:

“… this entirely new, entirely digital, blockchain based monetary infrastructure is working.”

1/ #USDC surging in market demand over the past days, reaching new ATH at $568m in circulation. Fascinating to see "flight to safety" within the crypto macro market, but also demand for high quality USD liquidity for markets.

— Jeremy Allaire (@jerallaire) March 13, 2020

Will Demand Remain When Things Calm Down?

It seems obvious that demand for stablecoins should increase as a huge percentage of cryptocurrency investors are panicking. However, the question is, will the dollar-pegged digital currencies remain attractive when things eventually start to stabilize?

Allaire thinks they will. As part of the thread below, he writes:

“A broader macro theme that will like emerge post-pandemic is the need for businesses to rely more fully on trust-minimized, decentralized infrastructure.”

As BeInCrypto previously reported, physical cash itself has already been deemed suspect in some parts of the world in the wake of the coronavirus’ spread. If viable and more functional alternatives are available in the form of stablecoins, why would a company even open itself up to the small but unnecessary risk of handling cash going forward? Allaire thinks they won’t.

The post Global Pandemic Is Proving Ground for Stablecoins, Says Circle CEO appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Global Cryptocurrency (GCC) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0014202 (-100%)

markets stablecoins proving drained billions seen cryptocurrency

markets stablecoins → Результатов: 57


Фото:

Tether Lauds Market Cap Growth Amidst Cryptocurrency Pandemonium

The cryptocurrency markets are crashing. It seems nothing is safe. Well, almost nothing… Over the last day or so, the entire cryptocurrency market has shed billions in value. One set of digital assets that has not plummeted in terms of their market capitalization, and of course dollar value, is stablecoins such as US Dollar Tether […] The post Tether Lauds Market Cap Growth Amidst Cryptocurrency Pandemonium appeared first on BeInCrypto.

2020-3-15 16:15


USDC is now the largest stablecoin by market cap after Tether, claims Skew Markets analysis

Some proponents in the cryptocurrency market have stated that 2019 will be the year of stablecoins, this speculation evidenced by the number of recent updates and developments in the space. In a recent analysis by Skew Markets, it was shown that all the top stablecoins, including Tether, had seen significant increases in market caps over […] The post USDC is now the largest stablecoin by market cap after Tether, claims Skew Markets analysis appeared first on AMBCrypto.

2019-6-19 01:30


Фото:

Cryptocurrency traders are shifting from stablecoins to Bitcoin

The second half of 2018 has seen Dollar-pegged cryptocurrencies (stablecoins) flood the market, but recent data suggests that Bitcoin might become the one true stablecoin. The latest report from blockchain research group Diar shows while Tether still accounts for an overwhelming majority of the total stablecoin volume, cryptocurrency traders are actually starting to exchange with Bitcoin directly, rather than use new, regulated alternatives.

2018-10-24 13:51


Фото:

Huobi Joins OKEx in Adding Four New Stablecoins

Huobi Global has announced its decision to list four USD-pegged stablecoins by the end of the week. In a support notice published on its platform, the company noted that users will be able to make deposits for Paxos Standard Token (PAX), True USD (TUSD), Circle’s (USDC), and Gemini exchange’s (GUSD) on its exchange starting from Friday, October 19, 2018 (GMT +8).

2018-10-17 21:15