The stablecoin market saw remarkable growth with its supply record increasing by 388% over 2021.
Based on observations beginning in early 2021, the supply of stablecoins assets has increased from a record $ 29 billion to over $ 140 billion.
The performance of this stablecoin market also involves Tether (USDT) and USD Coin (USDC) which are produced by Circle and Coinbase respectively.
Factors to this growth can be detailed as follows:
High usage in crypto trading platforms, again when involving different cryptocurrency trading activities.
Retail investors take advantage of stablecoins in the decentralized financial protocol (DeFi) to further dump yields.
Derivatives market development. Most derivatives spaces place futures contracts in stablecoins.
However, the stablecoins market is like an egg on the tip of a horn as monitors are looking for ways to enforce laws against this group of assets.
For example, the Working Group on Financial Markets by President Joe Biden has called for the implementation of new laws requiring issuers of stablecoins to be regulated in the same way as banks.
What is the fate of stablecoin next year?
2020 is expected to be the year stablecoins manufacturers improve their payment systems due to the growing demand for assets from around the world.
At the time of writing, USDT still dominates the stablecoins market with a market value reaching $ 76.5 billion, followed by USDC ($ 42 billion), Binance USD ($ 14 billion), DAI ($ 9.2 billion), and TerraUSD ($ 9.1 billion).
