Although the cryptocurrency space has grown tremendously in recent years to an estimated market cap of about $2.5T, the adoption of cryptocurrency a form of transaction remains low.
According to Chainalysis, total transaction volume across cryptocurrencies in 2021 was about $15.8 trillion. Sounds impressive, but it pales in comparison against SWIFT’s estimated daily transaction value of $5 trillion.
There are several challenges to the mass adoption of crypto, the most glaring issue being the volatility of cryptocurrency prices.
This was the price of Bitcoin in the last 1 year:
In November 2021, your coffee at Starbucks would have cost about 0.00008 BTC but today, it would could you 0.00013BTC, almost 2x more (in Bitcoin terms).
Enter Stablecoins – a cryptocurrency designed to maintain a stable value over time. We’ve written a guide to stablecoins and how they work previously, hence I won’t go into too much details here....