In recent weeks, stablecoins, i.e. crypto-linked assets that are backed by a “stable” reserve credit, have become increasingly important for the cryptocurrency market.At first, they were more of an asset used by fringe groups – but now this subset of altcoins is accounting for a growing percentage of the total crypto market.In fact, according to data from blockchain analytics company Coin Metrics on April 20, the value of all stablecoins in circulation has exceeded the $ 9 billion mark for the first time ever. What is particularly interesting about this statistic is that six weeks ago the total value of all stablecoins was $ 6 billion.The common thesis is that this is a crucial upswing for the crypto market – with many suspecting that the growing value of stablecoins is to provide money that can be put into Bitcoin, Ethereum, and other cryptocurrencies.
The huge stablecoin boom is not just bullish for crypto
If you’ve been on crypto Twitter in the past few weeks, you probably know that stablecoin issuers (like Tether, Binance, Gemini, and others) have minted stablecoins at lightning speed.For example, just last week, USDT worth $ 120 million was minted on two consecutive days.