Welcome back,
The crypto market has evolved a lot in the last 4 years. Earlier, the top 100 cryptocurrencies used to be the ones doing something meaningful for the world with real use cases. But today, we can see that the majority of them are not even doing anything serious for the world. There is no real solution being built on those blockchains.
In fact, around 7 to 10 currencies among the top 100 are stablecoins. That is what I am going to talk about today. Now, I am not against stablecoins, but the number of them has increased recently. Even in the top 50 cryptocurrencies, there are 7 stablecoins, and that is a concern for all of us, especially after what happened with one of the top 6 stablecoins recently that led to a major market crash.
The most concerning thing about these stablecoins is that their maximum supply is infinite. The blockchain on which those stablecoins are built can mint an infinite number of them. Once they get adopted into the market, they actually have the power to manipulate the market by printing any amount of stablecoins on the network.
We often see that USDT gets printed frequently, and there is nothing anyone can do about it. There is no authentic reason behind these printings of stablecoins. That is why I think it is a concern, and it is our responsibility to use only the trusted stablecoins. If we do this, new stablecoins will not get enough market or publicity to be adopted widely.
Again, I am not saying that all new stablecoins entering the market are scams or are trying to wreck the market, but why use different stablecoins when we already have a few trusted ones? I still use USDT as the only stablecoin for trading, and I am not going to start using any other stablecoin because I do not trust them.
Even big projects like Ethena Network launched a stablecoin in partnership, and it is the same stablecoin that was the reason behind the recent market crash. So even big crypto projects like Ethena ( ENA ), which are doing good work in the industry, can also be the reason behind such market impacts.
So how can we believe or trust stablecoins that are above the top 50 tokens or even above the top 100 tokens? I think we should stay away from them. What are your thoughts about stablecoins? I would love to hear from experts here because I know there are people who have more experience in the market than me.
Thank you and happy trading everyone.