This shows that stablecoins do not conform to the same patterns as other cryptocurrencies, as most usually follow Bitcoin’s activity.
It goes without saying, but stablecoins function in a different way than other cryptocurrencies.
The recent statistics indicate that during bearish times, traders lean closer to stablecoins.
The data does not show whether stablecoins have always been viewed this way, or whether it is a new occurrence only seen in the last few months.
One interesting result of traders transferring funds over to stablecoins is that it displays the sheer diversity of the crypto markets when it comes to their movements.
One reason for this increased trust may be due to how far stablecoins have matured.
Dai has undergone the same movements, where in late 2020 it became less volatile.
These are coins that maintain a certain price by using algorithms to mathematically force their worth to stay at a certain number.
Not only will this be the first stablecoin to launch on the Cardano network, but it will also be an algorithmic stablecoin.
With fascinating new developments, increased maturity, and resilience against bearish behavior, the future of the stablecoin industry is looking bright.
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