Stablecoins have changed the face of the crypto market. USDT changed how traders could bridge the gap between crypto and fiat. Let’s look at how the dawn of the fiat currency is imminent.
Collapse of Luna
Terra LUna’s collapse has put serious questions on the sustainability of the stablecoins. Nevertheless, there are a few noble use-cases that would help set up the tone for the stablecoins to survive the winter. However, for that, stablecoins must detach from algorithmic stablecoins. At this point, algorithmic stablecoins have not turned out too well in the market. The collapse of iron, ample and now Terra has raised serious concern.
How Stable Coins Can Rise in This Adversity?
Stablecoins would be the best way to connect to the fiat and crypto world in this bear market. They are undoubtedly helping investors generate steady returns in the DeFi market. Tether has occupied the centre stage in crypto trading. Hence, regulators have turned hawkish toward stable tokens. At the moment, stablecoins play a vital role in decentralized exchanges and lending protocols, and in the coming time, they will be critical in the payments within the ecosystem. All of these certainly make stablecoins the problem solver of the DeFi and crypto space.