Stablecoins have an equal share of critics and enthusiasts. The former believe that these tokens contradict the very idea of cryptocurrencies, while the latter value their low volatility. Over the course of the year, stablecoins have become quite popular as they minimize the risks of investing in cryptocurrencies.
Diar specialists, in their latest study of crypto market trends, noted a significant increase in the volume of stablecoin transactions. The most popular of them, USD Coin (USDC), True USD (TUSD), Paxos (PAX) and Gemini Dollar (GUSD), have reached a trading volume of $5 billion over the past three months. Largely thanks to the active support of cryptocurrency exchanges and bearish trends in the market, stablecoins managed to increase transaction volume by 1,032% during the fall.
Stablecoins solve the problems of volatility present in cryptocurrency by offering the decentralized, secure features that cryptocurrencies enjoy. This digital currency has established itself as a priority in global financial systems and offers direction for cryptocurrency adoption in the future.
Risk-averse traders, buyers and investors need a low-volatility asset for transactions, and stablecoins fit their needs well.
Large crypto platforms have already considered the advantages of stable coins, adding stablecoins to the listing. And the largest of them, Binance, announced the creation of a single stablecoin market and is convinced that stable coins will soon appear on it related to other fiat currencies.
However, stablecoins can also present an unpleasant surprise, sliding from the established parity of 1 US dollar to a few cents in a couple of hours if the company does not have reserve reserves in the bank.
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