While meme coins sparked a frenzy among retail traders, stablecoins seem to emerge as crypto’s most promising innovation so far.

The meme coin craze keeps going strong, even though regulators are being cautious because of their wild price swings. While these tokens can offer huge returns, the real game-changer might be something that seems less exciting and even a bit boring — stablecoins.

In fact, stablecoins seem to gain support even from the camp, which was initially afraid of crypto at all, which was big banks. Citi Wealth strategists emphasized in a recent research report that stablecoins “could end up reinforcing the U.S. dollar’s dominance,” adding further that activity has reached record highs, with $5.5 trillion in value across Q1 2024.

“Rather than usurping the dollar, therefore, this variety of cryptocurrency could thus make dollars more accessible to the world and reinforce the U.S. currency’s longstanding global dominance.”

Citi Wealth

Unlike Bitcoin (BTC), their value doesn’t swing wildly, making these assets useful for daily payments, savings, and lending. Most stablecoins are backed by reserves like cash or U.S. Treasuries, ensuring they maintain their value.

Oddly enough, stablecoins initially started as tools for crypto traders. They let traders hold funds in a digital dollar instead of converting them back to real dollars. However, as of today, their use has expanded significantly as many people now use them for cross-border payments, savings, and even loans.

State of stablecoins

Stablecoins grow fast. Like, really fast. Since their launch in 2014, they’ve reached a market value of more than $200 billion, per data from CoinGecko. In 2

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Author: Denis Omelchenko