Amidst Market Downturn Stablecoins Booms
Stablecoin Market Shows Growth
Recently, the Coin Metrics released data which shows that in February 2020, the market of stablecoin was up by $1.5 billion and to date it has reached over $7 billion.
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Investors Believe Stablecoin Can Provide Safety Amid Coronavirus Outbreak
According to a report, currently, the cryptocurrency market whether it is stock market or any other asset, everything has been struggling hard to maintain its value during this global pandemic and recession. The report further mentions that in March 2020, along with other cryptocurrencies Bitcoin also suffered a fall. At present, the Bitcoin market has reached $4000 from $10,000 and this happened in less than a month. Since 1987, it is for the first time the stock market sets the worst record for trading.
In this time every asset in the market is seeing a great fall, except the Stablecoins. During this time of pandemic release, on the one hand, the market is suffering and on another hand, the stablecoin is providing stable value and safety to its investors.
It appeared that many of the investors were shifting towards stablecoins because it was USD-pegged, but Carter did not agree with that fact. In his tweet, Carter mentioned,
“There is stablecoin creation happening, it's not just crypto risk assets flowing back into stablecoins, there is some demographic out there converting digital dollars into tokenized fiat.”
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