[Slashdot] - Stablecoins Soar in Value as Everything Else in Crypto Shrinks

[Admin]

The hottest spot in crypto right now is coins with prices that don't move. From a report: Stablecoins, cryptocurrencies which peg their value to assets such as the U.S. dollar, have ballooned in size over the past few months as Bitcoin and other coins whipsaw. The total market capitalization of stablecoins currently stands around $180 billion, up from roughly $38 billion a year ago, Coin Metrics data compiled by The Block show. By comparison, the total crypto universe is largely stagnant over the past year. The surge in market value shows that crypto traders are effectively moving their holdings to cash, according to James Malcolm of UBS. Bitcoin prices have collapsed by about 50% since mid-November, with many smaller coins posting even bigger declines. Rather than moving money off crypto-trading exchanges by converting back into fiat currencies -- a cumbersome and potentially costly process -- it's easier for investors to simply wait out the volatility in stablecoins, Malcolm said.

Read more of this story at Slashdot.

View the full article