The impact of stablecoins on the market

[therozaq]

Yes, you are right, when trading volume on an exchange increases, the best way to collect more assets is to take advantage of a busy exchange to grow the assets you have.
Meanwhile, if the season is bearish or collapsing, changing all assets into stablecoins is a smart choice.

I also always look at volume trading to sell my crypto assets, to make a profit or buy more coins when the price is dumped. Because usually at that time whales are manipulating prices. And when the market crashes we should keep our assets into stablecoins and wait to buy back potential coins.

[UNIVERSE]

You are right, with stable coins we can see the size of our assets in USD, stable coins can also save our assets when the market goes down. In my opinion, that's just the function of stablecoins in the crypto world.
so I agree with your opinion

Indeed, one of the advantages why we more often use stable coins when trading is because their value does not change significantly. Of course there will still be changes, but they won't be as significant. So, this ease our trading activities in according to accumulate, count, and also consideration more quickly to decide to sell  in what point or others.

So far, I'm I often use USDT as the most frequently used trading pair. Because of its convenience, USDT is the most reliable stable coin at any time. Yes, because the ups and downs are not that significant.

[Captain Corporate]

When they exist, there is nothing wrong with them at all. What fears me is the moment they may not exist anymore, that will definitely be not that easy at all. Remember, we are talking about USDT type of stuff with 100+ billion dollars, and that means we are going to end up with some stuff that may cause a lot of trouble for us. Imagine a 100+ billion dollar marketcap USDT crashing suddenly, after all its backed by just one company and anything could happen, if that happens then we are going to end up with a lot of trouble and it should not be all that easy at all. We should consider some other stuff in that case.

[Aanuoluwatofunmi]

I see stablecoins as the means to hold your asse at hand when you're yet to conclude on what you wanted to make with it, you can covert to stablecoin and hold because the value will not diminish and you're also not going to earn from it because it is pegged with the standard rate of USD, till we made a conclusion on what to invest and then we find a suitable pair of the coin we want with the stable coin we are holding.

[DAMKAR]

I see stablecoins as the means to hold your asse at hand when you're yet to conclude on what you wanted to make with it, you can covert to stablecoin and hold because the value will not diminish and you're also not going to earn from it because it is pegged with the standard rate of USD, till we made a conclusion on what to invest and then we find a suitable pair of the coin we want with the stable coin we are holding.

I only use stablecoins when the market is in a dump to enter my short-term crypto assets. because in the short term I invest in new coins or not top coins. This is very risky, that's why I need stable coins when dumping.

[EthereumDev_]

I see stablecoins as the means to hold your asse at hand when you're yet to conclude on what you wanted to make with it, you can covert to stablecoin and hold because the value will not diminish and you're also not going to earn from it because it is pegged with the standard rate of USD, till we made a conclusion on what to invest and then we find a suitable pair of the coin we want with the stable coin we are holding.

I only use stablecoins when the market is in a dump to enter my short-term crypto assets. because in the short term I invest in new coins or not top coins. This is very risky, that's why I need stable coins when dumping.

The method you are doing is quite correct, exchanging all the assets you own into USDT is the best choice to prepare the moment to re-enter coin which will have the potential to rise again, because when the price in the market collapses then the next price movement is price recovery and you have to Get ready to enter at the right moment because no one knows the price will fall to what price.

[MUGNIA]

I see stablecoins as the means to hold your asse at hand when you're yet to conclude on what you wanted to make with it, you can covert to stablecoin and hold because the value will not diminish and you're also not going to earn from it because it is pegged with the standard rate of USD, till we made a conclusion on what to invest and then we find a suitable pair of the coin we want with the stable coin we are holding.

I only use stablecoins when the market is in a dump to enter my short-term crypto assets. because in the short term I invest in new coins or not top coins. This is very risky, that's why I need stable coins when dumping.

You are brave enough to make decisions on meme coins, risks will definitely be in front of your eyes if we make the wrong move, but I'm sure you are a careful person so you can neutralize everything,

[Faisal2202]

I see stablecoins as the means to hold your asse at hand when you're yet to conclude on what you wanted to make with it, you can covert to stablecoin and hold because the value will not diminish and you're also not going to earn from it because it is pegged with the standard rate of USD, till we made a conclusion on what to invest and then we find a suitable pair of the coin we want with the stable coin we are holding.

That's right, it's one of the purposes of stablecoins, you might be surprised to know that till now stablecoins market has crossed $150 billion of dollars, that's not a small number. --> https://www.altcoinstalks.com/index.php?topic=319521.0  Stablecoins can also be used to make money, as you said they are pegged and can't be used to earn money, but they can be, for example, there are staking pairs that require us to take USDT or any other type of stablecoins. And besides it, we can also make earnings by holding pegged coins and by selling them at high price compared to the local price of your fiat currency.

They have become an integral part, and this trend is going to increase because a time will come when more crypto investors will be generated and once they will book there profits in this bull season they will hold there assets in stablecoins and thus they will add more to the whole marketcap of the stablecoins.

[Peter90]

you might be surprised to know that till now stablecoins market has crossed $150 billion of dollars, that's not a small number. --> https://www.altcoinstalks.com/index.php?topic=319521.0 

Yes, but let's keep in mind that market cap is not the only metric in order to gauge the impact of SC on the crypto market.
Trading volume is another metric, and to some extent it is a better one in order to get a sense of their relevance:

" despite stablecoins representing only about 10% by value of the crypto market cap, “they dominate the on-chain transaction volume – about 70% of all transaction volume.
So, from a crypto perspective ETH and Bitcoin take a backseat to USDC and USDT. These are, by volume, the value transfer mechanisms of our industry. They represent the huge majority of on-chain traffic and value transfer in our industry now.”

The 6 Types of Stablecoins


Stablecoins represent 70% of all on-chain transaction volume!

Their impact on the market is already huge. When I read it I was surprised myself!
It makes you wonder why the interest for SC is so negligible compared to other cryptocurrencies. Just consider - for example - how little space is dedicated to SC within this forum, the section dedicated to SC is completely secondary, it looks like they could take it away... and it would barely be missed!

[elbans89]

I see stablecoins as the means to hold your asse at hand when you're yet to conclude on what you wanted to make with it, you can covert to stablecoin and hold because the value will not diminish and you're also not going to earn from it because it is pegged with the standard rate of USD, till we made a conclusion on what to invest and then we find a suitable pair of the coin we want with the stable coin we are holding.

I only use stablecoins when the market is in a dump to enter my short-term crypto assets. because in the short term I invest in new coins or not top coins. This is very risky, that's why I need stable coins when dumping.

You are brave enough to make decisions on meme coins, risks will definitely be in front of your eyes if we make the wrong move, but I'm sure you are a careful person so you can neutralize everything,

Meme coins are very risky coins but also very profitable if we can buy at the right time before the hype. but many investors advise not to invest in this coin, because just waiting for the hype the price can rise. I agree that if you buy top coins, it's better.

[pacar_tiri]

Meme coins are very risky coins but also very profitable if we can buy at the right time before the hype. but many investors advise not to invest in this coin, because just waiting for the hype the price can rise. I agree that if you buy top coins, it's better.

Unfortunately, if you know big investors who have a lot of money, they often contribute to meme coins like this because the price movements are very fast so they can make profits quickly. Investors are not afraid of the risks because for them money is very easy to get.

[bayu7adi]

I only use stablecoins when the market is in a dump to enter my short-term crypto assets. because in the short term I invest in new coins or not top coins. This is very risky, that's why I need stable coins when dumping.

For me, stable coins are more suitable for preparing entries, not welcoming dumps. You can have a stable coin when the price of the asset you are targeting is too high, so that your money can be parked in USDT to make it more comfortable when the buy moment comes.
because the conversion rate to USD is 1:1, usually when there are more USDT holders, it means they are waiting for the right moment to buy, not always when it dumps, even when it rallies many people use it to go long without having to wait for the market to dump.

[Faisal2202]

Their impact on the market is already huge. When I read it I was surprised myself!
It makes you wonder why the interest for SC is so negligible compared to other cryptocurrencies. Just consider - for example - how little space is dedicated to SC within this forum, the section dedicated to SC is completely secondary, it looks like they could take it away... and it would barely be missed!

I got your point and it really makes sense, stable currencies are really underrated while they are a sole part of the market, you can see if any of the famous stablecoins start to fluctuate its value (starts to depeggs) whole markets shake and started to go red. It might be true that the SC section is not so active but that does not mean it is highly underrated it's just it is underrated here on this forum, actually, we should not think of it that way.

Because SC are mainly used for trading purposes, they are not used for holding purposes, I am not saying they are not used for holding fully but partially like for small times. Like after booking profit and holding some in stable to take another entry etc.

Stable currencies play an important role and if they start to go a little up or down, the whole market bleeds, that's their power. It's just not so many people here on this forum talk about it just like many other things.

[Trisha Rola]

stablecoins can give people access to international financial services in areas with unreliable or constrained financial systems. Users can use decentralized finance platforms for services like lending, borrowing, and remmittances by holding stablecoins instead of traditional banking systems

[Jamal Aezaz]

Unfortunately, if you know big investors who have a lot of money, they often contribute to meme coins like this because the price movements are very fast so they can make profits quickly. Investors are not afraid of the risks because for them money is very easy to get.

First of all big investors have experience and they also possess large sum of money due to which they can freely invest in meme coins as they don't think about risk. Actually experienced traders know well that how to recover money so if they loss in one coin then they have gained such a large amount that a single loss does not effect their economy.

They know all the investment related facts and they also don't invest in any useless coins but they first know about coin whether its a meme coins or some other altcoins and select after a deep research. If someone has money and experience then I think taking risk for them is not a big issue.