Stablecoin Market Capitalization Expands Amid Crypto Volatility

Stablecoin Market Capitalization

The value of stablecoins, which is pegged to the USD, continues to expand despite a recent plunge in the price of cryptocurrencies.

Tether has seen its market capitalization jump to $78.5 billion, ranking behind Bitcoin and Ether, while USD Coin has surpassed Solana to take the fifth spot with $44 billion.

The Chief Executive Officer of Alpha Impact, Hayden Hughes, says that stablecoins have a record of generating high yields in the current volatile market.

The executive observes that lending and borrowing allow users to benefit from 10% to 19% interest in fully collateralized loans.

Hughes thinks in a volatile ecosystem, stablecoins are more popular than purchasing bitcoin for many investors.

Tokens like Binance Coin, Cardano, Solana, and Polkadot have fallen more than 36% from their all-time high, but the stablecoins remain resilient.

Source: Bloomberg

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