Stablecoins, Connecting Crypto and Fiat
Key Takeaways Stablecoins’ high market cap demonstrates their importance to the broader crypto market. Due to their low volatility, stablecoins are useful as a form of collateral or for settling trades. Phemex recently added multiple new trading pairs to its platform. The new pairs focus on DeFi ecosystems. Stablecoins are a type of cryptocurrency that track the price of another asset, such as a fiat-based currency. There are different mechanisms that allow stablecoins to attach their value to the value of traditional currencies. Helping Decrease Volatility Stablecoin supply exploded in 2021 and continues to grow as new participants enter the space. According to Bloomberg , in Feb. 2022, the total market cap of stablecoins was sitting close to $180 billion. To add context, only BTC and ETH have bigger market caps. Two out of the top 10 coins in crypto by market cap are stablecoins. This is a sign of their relevance in the industry. Stablecoins are ...