Circle CEO: Stablecoin demand has increased significantly during this plunge, and blockchain-based currency infrastructure is working

In recent weeks, panic caused by coronavirus has intensified and has swept the global market. The cryptocurrency market lost tens of billions of dollars in this slaughter, and stablecoins are proving to be popular with investors who want to protect their wealth when the market is down.

Circle CEO: Stablecoin demand has increased significantly during this plunge, and blockchain-based currency infrastructure is working

Source: Pixabay

As BeInCrypto recently reported, with the mass market turmoil and crypto investors eager to withdraw to fiat currencies, the mainstream stablecoin Tether and other stablecoins have gained market value. The USDC-backed USDC plan co-sponsored by Circle and Coinbase is one of the stablecoins with increasing demand.

Jeremy Allaire, the project's chief executive, said that while the cryptocurrency market's decline was "not so exciting", he encouraged people to see "the demand for internet dollars" increase.

Allaire: Coronavirus pandemic proves blockchain funding is working

There have been few winners in recent days of market selling. At its worst, Bitcoin has evaporated more than $ 60 billion from market value in just a few hours. In terms of percentage loss, other digital currencies performed even worse.

However, during the recent market turmoil, stablecoin projects linked to less volatile currencies such as the US dollar have renewed investor interest. The market value of the largest stablecoin USDT rose to over $ 5 billion.

Similarly, the USDC of Circle and Coinbase projects also experienced market value growth. Circle CEO Jeremy Allaire said on Twitter that this increase in demand is encouraging for the industry:

"… this new, completely digital, blockchain-based monetary infrastructure is working."

Will demand still exist after things calm down?

It is clear that with the panic of a large number of cryptocurrency investors, the demand for stablecoins should increase. But the question is, will the digital currency pegged to the US dollar still be attractive when things finally start to stabilize?

Allaire thinks they will. In the following post, he wrote:

"A broader macro theme that will emerge after the pandemic is that companies need to rely more fully on trust minimization and a decentralized infrastructure."

As BeInCrypto previously reported, with the spread of the corona virus, physical cash itself has been considered suspicious in some parts of the world. If a stablecoin becomes a viable and more powerful alternative, why would a company even open the door to small but unnecessary risks of handling cash in the future? Aller thinks they won't.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

News

Investment tips for the next bull market: In-depth analysis of the development status and trends of 15 cryptocurrency tracks

Following the regular industry cycle pattern, the bear market has passed halfway. The Ethereum upgrade has brought ab...

Opinion

Unveiling the FTX Empire's 'Second-in-Command' The Glorious and Falling Journey of Chinese Genius Programmer Gary Wang

What has Gary Wang gone through, from being a close friend of SBF to becoming the COO of FTX and a key witness?

Blockchain

FCoin nearly 13,000 BTC can not be paid, some people report it, some people save themselves

Following the destruction of 720 million tokens and three days and three announcements, FCoin has made new progress. ...

Blockchain

Blockchain data analysis lets you see the counterparties

By analyzing the blockchain data set, we will have a better and clearer understanding of cryptocurrencies. (Image sou...

Blockchain

A new attempt at traditional finance, the technology of the Stock Exchange enters the currency circle

In January 2019, the London Stock Exchange Group announced a partnership with the digital asset trading platform AAX,...

Blockchain

FCoin's self-help campaign

The FCoin that stirred the entire exchange industry last year seems to be back after a long silence. Since February, ...