At press time, the world’s second largest cryptocurrency by total market capitalization (Ethereum) is trading at a stagnating price point of $204.31, thereby showcasing a relative value gain of around 0.1% since yesterday afternoon. Additionally, as can be seen from the chart below, over the course of the past 24 hours, ETH was able to touch a relative max of $209 before stooping down and scaling back to around the $205 region.
At the time of writing, the token was up by 0.02%. It was trading at $203.5 with a market cap of $20.9 billion. The 24-hour trading volume was recorded at a little over $1 billion.
As we’ve seen, the price of ETH has been shown to be a very gradual trend since the last drop of the last round.
Still, our confidence in ETH is very strong, and at the same time, our need for a “stable coin” in the cryptocurrency market is increasingly evident.
Then, the characteristics of a stable cryptocurrency are as follows:
- Store of Value: Acting as a safe-haven asset is the initial vision of the creation of a stable currency to avoid market downside risks. In the case of a sharp decline in market conditions, changing the digital currency to a stable currency such as USDT can avoid the risk of market downturn.
- Remittances: Acting as an alternative to the cryptocurrency in the case of large volatility relative to the currency, unable to achieve its payment function. Stabilizing coins without borders avoids high fees and avoids the risks of digital currency fluctuations.
- Medium of Exchange: Stabilizing coins can be used as a channel for access to virtual currency and legal currency such as BTC, especially as a strong regulatory environment.
- Pegged Lending: Stabilizing coins can solve short-term liquidity problems, users can exchange their tokens into stable coins and convert them into the required currency at any time.
In summary, only BTC can meet the needs of lending, payment, asset hedging and exchange media, and the price trend is stable.
So, if you ask me What are the “stable coins”in the cryptocurrency market? My answer is one and only one: