Binance cryptocurrency exchange recently released a report carried out by its marketing research and analysis wing Binance Research, noting an increase in the activities of stablecoins as well as the potential for less risk-averse mainstream companies such as Facebook and Samsung to further the course of cryptocurrency adoption.
According to the report, USD-backed stablecoins continue to see growth in adoption especially during the first four months of the year 2019; which in turn implies a rapid increase in their use as a wild card against volatility. Although the mid-cap stablecoins such as PAX, TUSD, and USDC show mild trading variations, overall 24-hour Quote Asset volume for stablecoins on Binance show significant growth “eating into the market share of both BTC-denominated and ETH-denominated pairs”.
Further, the existence of non-USD backed stablecoins have also proven that the intrinsic values of stablecoins are not exclusively tied to the US dollar alone. Rather, relative expansion to other currencies as well are increasingly becoming popular: “The expansion of non-USD stablecoins, illustrated by Trust Token’s new offerings (HKD, AUD, CAD, GBP, EUR), may lead to several key developments.”
More so, the analysis of the report considered the current involvement of companies such as Facebook and Samsung as a viable gateway through which cryptocurrency mass adoption could be achieved leveraging on their large existing user base:
“Stablecoin initiatives from various non-financial companies, i.e. Facebook and Samsung, may further the growth of the digital asset industry by introducing cryptocurrencies and blockchain technology to their large existing user bases.”
Commenting on the current “Facebook Coin”, as well as “Samsung Coin” under development, Binance Research noted that these tech corps have the advantages of being established brands. Moreover, in contrast to traditional financial companies, the incentive to disrupt the payment industry is far greater as they have the required resources to swiftly execute their plans. This could mean that these companies’ future roles in the digital asset industry could be pivotal, being potential “key growth drivers for both the global payment and the digital asset industry”.
Numerous reports about stablecoins indicate a global interest aimed at either providing a digital equivalent of a store of value, a medium of exchange or simply offering “a variety of alternative financial services“. These emerging class of digital assets continues to address the volatility concerns in the industry.
Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews
Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.
Image Courtesy: Pixabay