Stablecoin market capitalization exceeded $120 billion

The market capitalization of stablecoins increased throughout 2021, surpassing $120 billion by September.

In January, the market capitalization was estimated at about $30 billion. An assessment of the 10 largest stablecoins shows that market capitalization has quadrupled in the last nine months.

Tether (USDT) continues to lead the market with more than $72 billion in supply.

Messari analyst Ryan Watkins attributes this interest in stable coins to their wide range of applications, security and convenience.

In short, stablecoins are simply a better means of storage. and movement of dollars around the world.

Among the advantages of using stablecoins, Watkins highlighted:

• easy movement of capital between exchanges,
  
• acceptance of collateral on crypto derivatives platforms,
  
• use in decentralized finance,
  
• use in cross-border payments,
  
• use as a means payment,
  
• reliable infrastructure,
  
• confidentiality.

In addition, the programmability of the asset allows you to create them based on applications.

Watkins believes stablecoins are beginning to take over the offshore dollar market, which is worth more than $57 trillion outside the US.

The potential of stablecoins is great and they can become a serious competitor to the dollar, the analyst believes. That is why regulators are “closely monitoring this market.”

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