DeFi and the Rise of Stablecoins
Stablecoins are designed to have low volatility and work because of their reserve mechanism. For every USDT issued, the Tether Foundation keeps $1 equivalent in reserve. Tether (USDT) started to take off when Bitcoin's price began to rise in 2017, and Tether generated 1M for the first time in January 2016. Today, Tether has a trading volume of about $120 billion per day, which is more than half of Bitcoin's trading volume. The rise of stablecoins is surprising because the entire crypto market is fueled by speculative investment.
Join Hacker Noon
Create your free account to unlock your custom reading experience.