As an asset class, cryptocurrencies (crypto) are known for being infamously volatile, save for exceptions like stablecoins: a category of cryptocurrencies that try and peg their market value to an external asset.
Source: The Block
Stablecoins have been catching on recently.
At the time of writing the total supply of stablecoins is worth about US$102.6 billion (~S$135.8 billion); more than tripling in value as the total supply was only worth about US$29 billion (S$38.4 billion) at the start of the year.
Their growing popularity can be attributed to their functionality, as they offer both the speedy processing, security and increased privacy that comes with cryptocurrencies, and the price stability of fiat currencies.
Also, this growth suggests that more people are pumping money into cryptocurrencies into the domains of decentralised finance (DeFi) and trading cryptocurrency derivatives. This is because DeFi users use stablecoins to yield interest and trade while cryptocurrency derivatives traders use stablecoins as collateral....