Stablecoins are considered by many to be cryptocurrency’s answer to market volatility. True to their name, this new kind of digital asset has gained international notoriety for having its price pegged to the value of a fiat currency, such as the U.S. dollar, mitigating market volatility by tethering its value to a known, relatively stable asset. Faced with a comparatively uncertain crypto market, providing these price assurances is no small feat; making cryptocurrency less risky and more closely aligned with the comforts of the general public. Stablecoins are an important evolution to help break through to the mainstream. However, while undoubtedly successful, it’s important that we recognize that stablecoins are only an interim solution to the long-term goal of reducing crypto volatility.
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