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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