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
