October 21, 2020, saw a massive event in the cryptosphere with BTC getting approval from PayPal to be listed on their platform for buying, selling, and staking. With that said, BTC saw a significant rise crossing even the US$12,000 mark, at present, it is US$12, 942 at the time of writing. Generally, there are precedent traits in stable coins where they just go wild with a bullish BTC run. That’s what has started to happen ever since October 18, 2020, when the stable-coins like USDT, USDC saw massive scale trading in BTC-USDT pairing. Traders were on the rampage to demand more Tether which they can convert to BTC at Tether Price. A ripple effect has already started to shape the Tron Network that witnessed 450 million USDT getting minted on a single day. Having said that, Tether market cap has also quadrupled to US$ 16 billion at the time of writing.
What’s the Good Sign Around In the Stable Coin Market?
Perhaps, there’s a lot of optimism in the stable coin market since the unprecedented surge pushed the demand to over 56,000 to 60,000 on multiple exchanges as per the report by CryptoQuant. On top of that, for the first time whales were not the primary buyers involved for such a bull run in BTC-USDT trading. On the contrary, a large part of the liquidity at multiple exchanges has been driven by retail investors or small traders.
What’s the Future of Stable Coin Beyond 2020?
Stable-coins strive to undo the odds that its closest brethren BTC failed to achieve by stabilizing use that could massively scale up the adoption. Indeed, no one wishes to see the same scenario unfolding where Laslo Hanycez paid 10,000 BTCs for two pizza boxes. With that said, Facebook’s Libra could help establish a steady sentiment for stable coins after its launch in 2021. Terra has already been doing the same in South Asia. The only thing around will be to set-up a monetary policy for regulating their use beyond just a remittance system and adopt it in a greater schema of operations. As significant middle-men transaction costs will be completely wiped out from the market, there is a good going ahead for stable-coins to be adopted as a medium of payment in the future.