The best performance of digital currencies last month belong to stable coins!

In January, stable coins were the most profitable currency on the market. Now that the dollar is gaining strength in global markets, some investors seem to be turning their assets into stable dollar coins.

According to Quinn Desk, among digital currencies with a market value of over $ 10 billion, all 4 of the best tokens in terms of profitability this month are Quinn Stables. Investors could survive one of the worst days in the digital currency market just by keeping their coins stable; The days when bitcoin loses 17% of its value.

During this period, the value of Tetra, USCin (USC) and “UST”, a stable coin of the Terra network (Terra) increased by 0.02, 0.03 and 0.14%, respectively, and the price of BUSD also remained unchanged.

In other words, these digital currencies have managed to maintain the value of the capital of their traders. However, the most popular digital currencies on the market have lost much of their value. Atrium prices, for example, fell 25 percent during that time.

Many of the major digital currencies on the market grew significantly in the fourth quarter of 2021; So much so that bitcoin reached a new record of $ 69,000 in November. Since then, however, the digital currency has lost more than 40 percent of its value, reaching $ 38,200.

In this turbulent market, the almost constant return on stable coins is just as important to some investors as the uptrend.

Read also: What is Stablecoin or a stable digital currency?

Joe DiPasquale, CEO of BitBull Capital, said:

In the months when digital currencies fluctuate a lot, investors use stable coins to avoid fluctuations. When the price of digital currencies was constantly changing and their risk was growing, we went to the stables to maintain the security of our capital. Then, with a slight change in prices, we would enter the market and leave shortly after.

Ulrik Like, CEO of Ark36, says:

Stable coins can be used as productive assets to generate attractive returns.

The rise of the US dollar in international markets is another factor that has made traders interested in stable coins.

Last week, the Federal Reserve hinted that it would likely raise bank interest rates three times from March. However, Bank of America experts believe that the Federal Reserve will implement this policy seven times. Accordingly, the bank interest rate, which is currently 0%, increases by 0.25% each time.

The Federal Reserve’s shrinking monetary policy makes investing in fixed-income assets in the United States more attractive to traders. This makes the US dollar more attractive than other national currencies.

The dollar is likely to remain strong in 2022, given that the Federal Reserve has recently launched a campaign to curb the rapid growth of inflation in its country. As a result, digital currency traders have a stronger reason to invest their money in stable dollar coins.

On the other hand, the Finance Committee of the US House of Representatives must explain the stables in a virtual meeting on February 8 and determine how the market for these digital currencies will be regulated in the future.

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