For its part, José Luis del Palacio, co-founder of Decrypto.laalso in a conversation with this medium, assured that “the most traded stablecoin is USDT, both on Decrypto and globally. Its market capitalization of more than 80 billion dollars places it as the 3rd cryptocurrency of all.”
65% of Decrypto traded volume is in stablecoins and the remaining 35% in other cryptocurrencies such as Bitcoin and ethereum.
According to the Palace, “in recent months there has been greater interest in new users in stablecoins, since they are an easy way to dollarize savings without being exposed to the volatility of other cryptocurrencies”.
At Decrypto, investment in USDT pays 9% annual interest. “This figure is higher than inflation in the United States (8.5% year-on-year) and much higher than what a fixed term pays in a bank, with the advantage that the investment is not blocked (you can withdraw your cryptocurrencies whenever you want). ),” explained the co-founder of Decrypto.la.
To its turn, Miguel Schweizer, Co-Founder Quantia.ioassured in dialogue with Ámbito that the most traded stablecoins on the exchange are “USDT and behind USDC and finally DAI. In that order for both stock and trading”. In terms of volume, the main one is still Bitcoin, followed by Ethereum and after them, the stablecoins.
“The interest of the clients has increased. Many are using USDC to take advantage of the rates. Invest with attractive rates and without banking risks (Argentines)”, he opined and added: “Quantia pays 9.5% annual effective rate“.
“Yes, we must consider that originally the crypto offered by the platform were BTC and ETH, therefore users acquired these, and then other cryptos were incorporated, including stablecoins, and users were diversifying,” concluded Schweizer.
What are investors looking for in stablecoins?
Rodolfo Andragnes, President NGO Bitcoin Argentinaanalyzed with this medium the interest that crypto investors have for the various types of cryptocurrencies and in this regard pointed out that “The reasons one goes into stablecoins or into Bitcoin are different.”
“The majority of people who enter Bitcoin, the new ones, do so because they were talking to a bitcoiner and they understood it as an asset and currency of value reserve in the long term, with more sense than other assets”opined and added that in the case of stablecoins “It is used as an intermediate, or as a meanwhile, or to be able to make investments in DeFi and that yield between 10% and 12% in dollars”.
“Many people use it as an alternative to the dollar”said about these cryptocurrencies with parity with the greenback and differentiated it from the Bitcoin which, he said, “is used as an alternative store of value in the long term”.
“Not everyone who has reasons to want to get out of inflation and look for an alternative to buy dollars goes to Bitcoin, but those who have the active decision to choose Bitcoin over other assets. Stablecoins you have when you decide, instead of having dollars in the safe, I have digital dollars that give me some advantagesAndragnes closed.
For his part, José Luis del Palacio explained that “when we started with Decrypto in 2019, the vast majority of users saw Bitcoin as a great investment opportunity. At that time most of the volume traded was in Bitcoin or Ethereum. As the months went by, the market began to mature and found utility in the use of stablecoins.”
“Stablecoins pegged to the value of the US dollar serve as a payment method, since they do not have the volatility of the rest of the cryptocurrencies in the short term. Many professionals use stablecoins to get paid for their jobs, just as many immigrants use them to send remittances to their families,” he added.
In the last two years, “companies found in stablecoins an unrestricted payment method and the possibility of dollarizing your savings. These wholesale clients transact significant volumes of money, so the interest in stablecoins increases compared to other cryptocurrencies such as Bitcoin or Ethereum”, concluded José Luis del Palacio.
What is a stablecoin?
A stablecoin is a cryptocurrency that was designed to minimize price volatility and achieves this through the backing of a “stable” asset or basket of assets. Some examples are: fiat-backed as they are backed by an underlying government currency, crypto-backed as they are backed by one or more cryptocurrencies, and algorithmic ones that rely on smart contracts.
Tether (USDT) It is one of the most popular stable cryptocurrencies in the market and has the highest transaction volume and market capitalization. Each token was backed by one US dollar at the beginning of its creation, but since 2019 the backing has changed to include loans to affiliated companies.
USD Coin (USDC) It is backed by the US dollar. The USD Coin is an Ethereum token, so it can be stored in a wallet compatible with this digital currency. This stablecoin also has the support of the financial company Goldman Sachs.
Dai (DAI) it also keeps its value as close to the US dollar as possible through an automated smart contract system on Ethereum. Dai is maintained and regulated by MakerDAO, a decentralized autonomous organization.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
