The role of stablecoins in cryptocurrency and blockchain cannot be underestimated. These assets are more than just trading vehicles, as they serve multiple use cases. Moreover, the stablecoin transferred value increased by nearly 300% year-over-year, confirming overall exposure is likely to increase further.
Transferred Value For Stablecoins Is Impressive
There are still many people who wonder why anyone would buy stablecoins. A digital representation of the US Dollar or other fiat currency is appealing for many reasons, including trading crypto assets. However, these currencies are now an integral part of decentralized finance and provide better interest rates than keeping money in a savings account.
As overall demand for these stablecoins increases, so, too, will the overall adjusted transferred value. More specifically, the pegged currencies have a transferred value of over $24.7 billion. That is a strong increase compared to December 2020, when that metric was a lot lower. Even though the chart also depicts a clear peak, it appears the overall momentum is heading up again.
Compared to December 2020, when the adjusted transferred value did not break $7 billion, the industry has come a long way. More importantly, there are now more pegged currencies than ever before. Not all of them are worthwhile or a solid peg, though. Currencies like Neutrino Dollar, HUSD, XSGD, and others may not trade near their initial peg. Sometimes, they are worth too much, which can be beneficial, but often, they’re worth less.
It is also worth noting that stablecoins have a combined 30-day volume of $1.4 trillion. There was a time when talking of trillions in volume would seem ridiculous. Today, it is the most normal trend, even if that means there is a 33% decline for the month. The cryptocurrency industry remains curious, but it also introduces many new opportunities.
