There has been a sudden rise in the number of stablecoins that are present in the market. Many would think why such is necessary in the same way others ask, why create more crypto tokens and cryptocurrencies when they are already many existing ones in the crypto market?
This could be as a result of the need for closer adoption or faults in the existing ones or quest for profit.
Some of the existing stablecoins in the market include Tether (USDT), TrueUSD and the recently announced Gemini dollar (GUSD).
Some of the reasons why tether could not be easily displaced are:
1) It is highly trusted in the market: many crypto traders have found succour in Tether in protecting their investment when the crypto market is extremely volatile and unpredictable, due to its little or no volatility. It could be hard for the recent once to displace it, since many users are satisfied with it.
2) Not associated or linked with an exchange: some of the new stablecoins in the market are associated with an exchange like TrueUSD that is affiliated with Poloniex exchange and Gemini Dollar with the Gemini exchange owned by the WinkleVoss twins Tyler and Cameron.
3) Its high trading volume: it is like someone to believe that bitcoin could easily be displaced even as its market capitalization is the highest. Among the entire stablecoins, Tether is the first and is still maintaining the lead in terms of ranking and market capitalization, USDT is the second-most traded asset behind Bitcoin.
4) Rapidly increasing market adoption: many exchanges are using Tether to offer leverage to its traders. But, most of the other stablecoins could not boast of the listing that Tether enjoys.
5) No reversible exchange: many traders would obviously not be comfortable if their transactions were paused or reversed. A recent report shows that transactions with Gemini dollar could experience such unlike Tether.
What Do You Think of Stablecoins? will Tether USDT be Overthrown anytime soon?
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