Recently, Bitcoin has been steadily rising, reaching a peak of $13,200 and entering a strong trend. With the market sentiment being positive, Bitcoin’s volatility has the potential to spike. In the meantime, stable coins are the best option for dealing with extreme market price fluctuations. A stablecoin is a digital asset or digital currency that is linked to fiat currency or other financial assets. Stablecoins were initially created to address the volatility of digital currencies. Through constant development, stablecoins are now able to provide more utility. In fact, the first stablecoin was the USDT, which was issued by Tether in 2014.Tether claims that for every USDT they issue, they deposit the same amount of dollars in their official account. That is, for every USDT token issued, their bank account will be funded with $1.
This article will analyze the history of stable coins, types of stable coins, market development of stable coins and other aspects, and discuss the future development of stable coins.