The crypto ecosystem continues to grow through the latest innovations that will benefit the digital financial industry. One of these innovations is Stablecoin, which is one of the adoptions of crypto assets and web3.
Stablecoins exist because investment in crypto assets has quite high volatility with speculative values, both long term and short term. So that this innovation is a breath of fresh air for investors who want to own crypto assets but move stably.
Stablecoins tend to have lower volatility due to price because their value is based on conventional assets, such as a combination of currencies, gold, silver, or other valuable assets. For this reason, stablecoins are often the top choice for financial decisions of institutional and retail users of crypto assets, said Ajaib Kripto Financial Expert, Panji Yudha in an official statement.
Read More Support PMK 68, Tokocrypto Launches Crypto Tax Evidence Feature
According to CoinMarketCap data, there are currently 134 stablecoins with the top three stablecoins namely, USDT, USDC, and BUSD representing more than 90 percent of the total stablecoin market capitalization (USD 127 billion).
The two stablecoins that investors are currently most interested in are USDT and USDC because their values are based on US dollars with a ratio of 1:1. USDT and USDC are the most popular stablecoins in the crypto asset market. Each unit of stablecoin Crypto Asset in circulation is backed by USD 1 worth of US dollars held in reserve in the form of a mix of cash and short-term US Treasury bonds.
UDST and USDC are the most widely used crypto asset pairings on various world crypto exchanges, this makes it easier for investors to carry out asset transactions in the stablecoin network with USDT and USDC pairings,
Investors can buy Bitcoin (BTC) crypto assets using USDT supplies to be paired into BTC/USDT.
The existence of stablecoin innovation has also contributed to increasing investor confidence in crypto assets. The Commodity Futures Trading Regulatory Agency (Bappebti) recorded 5.46 million new users of crypto assets in 2022. So that now there are 16.7 million crypto asset investors in the country. Stablecoins are a means of exchanging assets that bridge the gap between fiat currencies and crypto assets, so stablecoins such as USDT and USDC are investors’ favourites. Owners can store crypto assets in digital wallets or transfer assets cheaply and quickly with a stable value.