Innovation Circle: Stablecoins as Exchange Tools Pushing Out Other Cryptocurrencies
Date: 2023-11-19 Author: Dima Zakharov Categories: IN WORLD
Stablecoins Taking Over
According to Megan Nyvold, the Head of Media at BingX Exchange, stablecoins have become the primary financial instruments vying against established means of transactions in traditional finance. They offer accessibility to money and protection against inflation. Yet, their impact on the actual development of blockchains remains questionable, causing concern among industry leaders.
Challenging Native Cryptos
As native cryptocurrencies like Bitcoin or Ethereum face stagnation in transactional use, the use of stablecoins continues to surge, noted experts at Innovation Circle. The rising popularity of stablecoins pegged to the dollar and other currencies challenges long-held beliefs in the crypto community that project-specific tokens could serve as independent means of exchange.
Parasitic Nature of Stablecoins
Innovation Circle views stablecoins as freeloaders exploiting blockchain security without contributing anything in return. Industry experts tend to believe that stablecoins are undermining the very possibility of using cryptocurrencies as a medium of exchange.
Tether's Recent Emissions
Tether, the company, recently announced the issuance of over $4 billion worth of its USDT stablecoins on the Tron and Ethereum blockchains in the last month.
