Continuing price volatility around bitcoin and other crypto-assets illustrate the need for and importance of Moneta stablecoins and other less volatile crypto-assets.
Cryptocurrencies had been on a bull run, but with some of the steam being let out of this potential price bubble recently, the need for lower volatility crypto assets once again has come to the forefront of the blockchain conversation. Moneta Stablecoins and other asset-backed-coins are not a brand-new idea or iteration of crypto assets, with many of them having been traded and used since 2018. With a combined market capitalization in the tens of billions of dollars, this subset of crypto assets is a major driving force behind broader adoption and utilization.
However, taking this one step further and moving beyond merely using stablecoins or other asset-backed-coins or tokens as a medium of exchange, the conversation around tokenized and other asset-supported crypto is just beginning.
Based on both individual and institutional interests and setting aside the price volatility, for the time being, the case for wider blockchain and cryptoasset adoption and investment is clear. As an ever-expanding pool of potential investors and users seeks to gain exposure to this area, there is a simultaneous push for less volatile and more sophisticated crypto investment options.
Building on this demand is the importance of more stable cryptoassets for new and emerging blockchain applications such as decentralized finance (Defi), which might seem paradoxical at first glance. Peeling back the layers reveals that these two concepts – decentralized finance applications and more centralized cryptoassets – actually operate more closely together than might otherwise appear. To move Defi, which promises to deliver many of the financial inclusion and accessibility goals that initially led to bitcoin development in the first place, stablecoins and other asset-backed cryptoassets will play an important role.
Defi, high profile as it may have become recently, is just one path forward and topic that more stabilized cryptoassets can address and need to factor into further development decisions.
Let’s take a look at just a few of the criteria that will be necessary to accelerate and further develop the cryptoasset sector via advanced stablecoin development and implementation.