Mar 11, 2022 - 4 days read

A big boost for stablecoins is coming in 2021

Creditum.io 13.6k

Via Medium

Creditum Trust, the parent company of Creditum, plans to include stablecoins in the future, as it adds DeFi technology to its products. To be clear: stablecoins are cryptocurrencies that are tied to…

Creditum Trust, the parent company of Creditum, plans to include stablecoins in the future, as it adds DeFi technology to its products. To be clear: stablecoins are cryptocurrencies that are tied to an asset, such as the dollar or euro for example, to stabilize the price.

Sead Fadilpašić writing for Crypto News says: “2021 could be the year when stablecoins move deeper inside the non-crypto markets, with some expecting the total value of stablecoins almost tripling and surpassing USD 100bn this year, according to industry figures.”

Last year the market cap for stablecoins increased six-fold, doing better than the market cap of the US dollar. At the same time we have seen DeFi trending upwards, and a demand for ‘internet dollars’ emerging.

Experts predict a great year for stablecoins

Matthew Gould, Co-Founder and CEO at Unstoppable Domains, a company building blockchain domain names said: “I’m very excited about the growth of stablecoins, expecting the total value of stablecoins to hit [USD] 100bn in 2021. Cheap market access to financial products for everyone on the planet is always exciting,”

Simon Seojoon Kim, CEO and Managing Partner at South Korea-based blockchain accelerator Hashed, agrees with Gould. He said: “For public blockchain supporters, it is only reasonable to expect that stablecoins will further gain importance in crypto exchanges, DeFi, and ultimately diverse areas of the fintech sphere including payment, remittance, investment, etc.”

Others, such as investment firm Blockchain Capital, think stabelcoins will exceed $100bn and reach $150bn. Meanwhile, onathan Zerah, Head of Marketing at private messaging application Status.IM believes that stabelcoins will be increasingly used outside of DeFIi platforms this year, commenting, “we will see more goods and services based marketplaces arise with increased confidence to enter them.”

Tether leads, and others will join

Tether is one of the most popular stablecoins, and its Chief Technology Officer, Paolo Ardoino, argued, “2021 may be the year that stablecoins penetrate non-crypto markets more deeply, helping to increase mass adoption.” He also believes that as the public start to see digital currencies as the new norm, we will see more of them use stablecoins instead of fiat currencies.

It is also likely that we will see stablecoins pegged to more currencies, and that will expand the market.