Stable coin: new crypto trend?

[MrSpasybo]

Despite this year’s uncertainty that has plagued the global economy, 2020 will go down as the year of the stablecoins due to the digital sector’s tremendous growth, with new developments emerging across the board. While some attribute this growth to the booming interest in decentralized finance among crypto enthusiasts, others see it as a bullish trend that confirms the inflow of fiat currency to the crypto ecosystem.

Article: Stablecoins race ahead: Fiat-backed crypto booming amid uncertainty

It can be said that stable coin has made great developments in 2020, despite the pandemic causing the decline of the world economy. The daily transaction volume of USDT is even equal to the total transaction volume of BTC & ETH.
Do you think the cause is DeFi, is the trend of moving traditional assets to crypto assets or is it because CBDCs have become the concern of governments?
And will this very rapid development have any negative effects on the world of crypto?

[TomPluz]

The rise of stable coins can be a good sign for the whole cryptocurrency industry. It means that more and more people and institutions are getting into cryptocurrency, and they are availing of the stability provided by stable coins to counter-balance the high volatility associated with digital assets. We know that cryptocurrencies can rise and fall in an instant so there is that need to have some buffer zone provided by stable coins. The only concern I have is that the growth of stable coins seems to be concentrated on Tether, let's see how things can balance out in the coming years.

[Shahinaz]

negative effects may not be seen at this time, but will be seen in the future. for now with this development open a bright spot for the existence of crypto itself, at least there is the possibility that crypto is legalized

[mahid]

Today Stablecoins are digital currencies whose value is pegged to fiat currencies like the dollar. As Blockchain-based tokens they allow for fast transactions at low costs and are used especially by cryptocurrency traders. Today, over $10 billion in stablecoins are circulating. In our latest working paper, we analyze the influence of stablecoin issuances on the returns of major cryptocurrencies and conclude that stablecoins contribute to price discovery and market efficiency of cryptocurrencies. We find that the issuance of stablecoins follows cryptocurrency market downturns. The negative price trend stops on the day before the issuance and yields a positive abnormal return in the twenty-four hours before and after the issuance.

[trauchot]

Stable coins are becoming very popular and this is understandable why, because when the cryptocurrency market falls, you can hold your investments in stable coins and you will not lose anything, and therefore so many cryptocurrency companies are increasingly creating stable coins, I also want to note that stable coins are becoming more and more popular and more in demand.

[Gurujebs]

The DeFi has nothing to do with the stablecoins boom. DeFi came just the way ICO trended in the past though I think this is way better than ICO performance in the last bull run.
There were no inflow of money as the total market cap remain the same. There was rise in Usdt demand as the exchange volume has increased by 20% compared to the past ones. DeFi is booz has calm for now, I think non fungible token. NFTs is the new trend in crypto space because their demand has tremendous so far.

[Dora Walletinvestor]

I think the need for stablecoins is somewhat connected to the DeFi hype. Tokens have shown so much volatility, and while the potential for growth is a good thing, on the other side there's also a potential for extreme downtrends. Also, projects that turn out to be a scam damage the reputation of the crypto market as a whole.

[EthereumDev_]

Stable coins are not new coins because currently stable coins do not have good price movements because they tend to be silent and there are not too many movements so it is difficult to get profit.

[Paglamon]

Cryptocurrency is one of the products that will play a huge role in the economy in 2020. These include Bitcoin, ethereum and Bitcoin Cash. These currencies occupy a huge place in the economy. I think the wheel of the economy has kept moving. Because cryptocurrency markets were not damaged during the epidemic. During the epidemic I saw that these currencies prevented the destruction of the economies of different countries and I think the economies of different countries have improved. These cryptocurrencies have a special role to play in keeping the economy afloat in countries where cryptocurrencies are approved. So I think Bitcoin has kept the wheel of the economy moving, Bitcoin has had the highest amount of cash transactions, I have seen. So these coins are really good and I am very proud of them. Because I trade these coins.

[Prime]

I don't really know what make it new trend. Because, stable coin is that stable coin. It always has the similar value. But if you are asking the trend, I think DeFi is now ffering the best crypto discussion and also relation. In this case, the crypto is good thing of technology, but not always the stable coin.

[sampoerna]

I don't think it is a new crypto trend, it is already an old trend. The new trend in crypto is Defi token, many people want to buy Defi tokens because of the advantage of instant high moves of the Defi tokens. Many people got big profits from Defi tokens in the last few weeks since the significant increase in the prices.

[Fenix]

The rise of stable coins can be a good sign for the whole cryptocurrency industry. It means that more and more people and institutions are getting into cryptocurrency, and they are availing of the stability provided by stable coins to counter-balance the high volatility associated with digital assets. We know that cryptocurrencies can rise and fall in an instant so there is that need to have some buffer zone provided by stable coins. The only concern I have is that the growth of stable coins seems to be concentrated on Tether, let's see how things can balance out in the coming years.

The last year can be said to have been the year of private and commercial stablecoins. Next year is likely to be the year of central bank stablecoins. Although by this time there are already several digitized currencies of states, with the advent of the digital yuan, a new stage in the development of cryptocurrency will begin. For China, almost all states will seek to issue their digitized currency. This should significantly affect the use of decentralized cryptocurrency as a means of payment. There will be fierce competition between the stable coins of states and the decentralized cryptocurrency for use as a means of payment, that is, as money.

[Blaze]

I don't think it is a new crypto trend, it is already an old trend. The new trend in crypto is Defi token, many people want to buy Defi tokens because of the advantage of instant high moves of the Defi tokens. Many people got big profits from Defi tokens in the last few weeks since the significant increase in the prices.

yes of course stablecoins will provide many benefits, take advantage of them well.

[wawan96]

stable coin of choice for the traders to buy of product Defi also have adopted it as well to create a more stable coin-coin to be implemented with a combination of the stable coin but investors tend to prefer to invest in a coin that has a value that valuable to take advantage big profit.

[Hope4life]

I don't think this is a new trend, the current trend is about DeFi but I see it is still related. In these conditions, people want to keep their money safe and without losing anything in crypto and stable coins are the right place for that.