Stablecoins Take Over the Spotlight as Bitcoin Experiences Slumps

Despite the current market fall and as Bitcoin (BTC) slumps down each day, the affinity towards stablecoins is on the rise. With these coins put to greater use, the stablecoin sector grows stronger than ever before.

The Slump of BTC

Since the crash in December, the crypto community has witnessed a tough market. Until now, nothing much has changed and the market remains dormant. Amidst all this, BTC took the most hit.

Bitcoin struggled enormously to maintain the $50K price range. From hitting a rock bottom of $45,967 a few days back, BTC presently trades at around $46K–down by 5% in the last 24 hours. On the other hand, as the top cryptocurrency experiences a downtrend, stablecoins are enjoying an upsurge in the market.

The Surge of the Stablecoins Sector

Generally, stablecoins are digital currencies that are backed by assets like fiat, gold, and other cryptocurrencies. Interestingly through time, the usage of stablecoins has improved, but not as much as compared to the present.

Accordingly, Visa, a major online payment giant, has recently brought forth a crypto advising sector into play. For them, stablecoins will become the largest medium of exchange on any basis, even for commodities, rather than any other crypto. In addition, Meta Platforms Inc, where Facebook, WhatsApp, and Instagram come under, has launched its own wallet made especially for stablecoins last week.

Moreover, as Central Banks and other institutions around the world are indulging themselves in incorporating cryptocurrency, their first step involves stablecoins. That said, with its use cases continuing to rise exponentially, the overall market cap for stablecoins is likewise on the rise.

Additionally, Delphi Digital states that the overall market cap for major stablecoins such as Tether (USDT) has surged up from $129 billion to a whopping $150 billion for last month alone.