A Big Wave of Stablecoins Detected – Reports Predict One to be Launched Every Week

Coins water

Author: Isabelle Yeo

It is  believed that the release speed of the product will accelerate, and it is expected that a new stable currency will be launched almost every week.

According to cryptovest, there are a total of 57 stable coins that are being deployed and already in the cryptocurrency ecosystem. Research shows that the number will continue to surge, and then one will be launched per week.

Blockchain released a research report on stable currency, which found that the market’s popularity of the asset has begun to heat up. These fixed-value digital assets are becoming one of the tools to increase popularity in the cryptocurrency ecosystem. Although Tether (USDT) is still the most popular dollar-linked stable currency, the report shows that a total of 57 stable currencies are now in various development states, whether they are fully deployed or awaiting release.

Of the 57 stable coins, 23 are fully launched and 34 are still in the preparatory stage. The study divides stable currencies into two categories—asset support types and algorithmic. In the asset support type, not all currencies are secured by fiat money, some of which support their value by stockpiling other encrypted assets (such as Ethereum). The algorithm-based stable currency maintains a peg to the US dollar through various supply and demand controls.

The study found that although the number of new stable currencies is booming, only a few can be launched on large exchanges:

Eight stable coins have been successfully launched on one or more first-tier exchanges: Tether (6), TrueeUSD (5), SteemDollar (4), NuBits (2), BitBay (2), Gemini (2), Paxos (2 ), Numins (1), STASIS (1), HelloGold (1).

Currently, USDT accounts for more than 93% of the total market value of all stable currencies.

Other studies have shown that Ethereum is the platform of choice for most stable currencies. Currently, the most mature wallet is not eager to support stable coins. On the other hand, if the asset exists as an ERC-20 token, it can be accessed immediately via MyEtherWallet. There are a handful of assets that use Bitcoin, NEO or Stellar networks to run their tokens.

Blockchain researchers pointed out that the stable currency is still in the early stages of development, and its role is still unclear. The report writes: Although people are very interested in the stable currency, the technology is still in the early stages of development, and there may not be a perfect stable currency at present. We look forward to the further development (and innovation) of the technology.

The report focuses specifically on algorithmic stabilisation coins, and the value linked to these currencies can be subject to unexpected attacks. Some believe that algorithmic stable coins are likely to become more democratic and decentralized. But so far, this type of stable currencies have not been tested in the real trading environment.

The launch of the stable currency also follows the ICO model, where start-ups raised about $350 million in funding this year. Only the Basis project raised about $133 million. Basis can be understood as an algorithmic protocol based on central bank policy.

Other questions about stable currency include whether it meets regulatory requirements. For some stable currencies, the payment and account amount may be limited. A sufficiently powerful crypto asset can also be considered a competitor to a legal currency.

The report believes that the release of the product will speed up, and it is expected that a new stable currency will be launched almost every week. However, all of these assets need to prove their strength before being accepted as a stable and reliable alternative to storage. Just yesterday, a Goldman Sachs-backed company, Circle, officially released the stable currency USDC.

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