Is the market saturated with too many stablecoins?

[Abiky]

I've noticed an increase of stablecoins on the market over the past few years. There are now many different types of stablecoins for USD, EUR, and other top Fiat currencies in the mainstream world. Some of them are legit, while others are just pure hype (scam). To my surprise, Tether (USDT) is the top stablecoin in market cap. For a company which often lacks transparency of its USD holdings, I think that Tether is just an over-hyped coin that will see its bubble burst real soon.

As far as other stablecoins go, I believe that people will only choose those that are on the top ranks in market cap. I wonder if so many stablecoins are actually needed or necessary for the blockchain industry to thrive? Do you think that the market is really saturated with too many stablecoins? Or is it still fine?

What are your thoughts?

[mersal]

Almost every stable coin has the same use case which is for using trading that is the reason why people choose tether which got huge marketcap so the traders won't have any difficulties on liquidating them.But it has no real use in the crypto market, probably people can claim it has stable value so it is suitable for day to day life but its actually have no difference with the current fiat digital payments.

[ethereumhunter]

The market is fine with so many stable coins. With many stable coins around the market, people would have many options that they can choose to save their money value. I don't think that the market is saturated with too many stable coins because I think that can be a hard competition between each stable coin. We will see what people choose with so many stable coins, and maybe with that, we will know what stable coin which will be worth holding for the money value in any situation.

[kingzpro]

I've noticed an increase of stablecoins on the market over the past few years. There are now many different types of stablecoins for USD, EUR, and other top Fiat currencies in the mainstream world. Some of them are legit, while others are just pure hype (scam). To my surprise, Tether (USDT) is the top stablecoin in market cap. For a company which often lacks transparency of its USD holdings, I think that Tether is just an over-hyped coin that will see its bubble burst real soon.

As far as other stablecoins go, I believe that people will only choose those that are on the top ranks in market cap. I wonder if so many stablecoins are actually needed or necessary for the blockchain industry to thrive? Do you think that the market is really saturated with too many stablecoins? Or is it still fine?

What are your thoughts?

Well it is a free market and like hundreds and thousands of crypto coins we may also see a lot of stablecoins in future because every big company will be launching their own stablecoin and also do not forget about the official digital currencies that many countries are working on they will also be like stablecoins we already have in the market.

[layoutph]

I dont think stablecoins will make the market saturated , its like hedging funds in fiat. What matter is having a huge number of altcoin. This makes Bitcoin hard to grow. Imagine you are buying Bitcoin but dumping it to buy an altcoin and joining ICOs.

[siddartha1492]

Seems like Tether has basically made other stable coins obsolete. If something happens to Tether like not enough backup assets or trust issues, then it will be quite bad for the industry.

[jossiel]

There is no need for more stable coins. We've got plenty of them trying to get as much as volume that they want. The Gemini dollar, the USDC of Coinbase and soon we'll see more of the CBDC type of cryptocurrency which goes down to this category.

The 2017 pump has something to do with Tether and I think in the nearer future, these stable coins will play a factor for the next bull run.

[tsaroz]

With more numbers, we would have better options. As you already stated, Tether is the most used stable coin but it's been pointed out several times that Tether is issuing coin without having an equivalent escrow holding of USD. This makes it an unsecure option, yet people are using it. It's mostly because they can't find a better solution. For a truly stable coin, it should be backed by the thing it's pegged on. USD stablecoin escrowed with Ethereum don't make sense. What if ethereum go zero overnight?

[minairia3]

Actually depends on the users. Most traders will still pick USDT cause most every exchanges support tether, I think some stablecoin are also good but there are too many other projects releasing their own stablecoin. Specifically Binance, which releases a lot of stablecoin per countries supported.

There is no need for more stable coins. We've got plenty of them trying to get as much as volume that they want. The Gemini dollar, the USDC of Coinbase and soon we'll see more of the CBDC type of cryptocurrency which goes down to this category.

There are other stablecoins like fiat cryptocurrency used in other exchanges its not that it is not needed but it is prefer of course by other trader that convenient for them to use it.

[gaston castano]

will be stable if the number of other coins continues to grow, so everything will be balanced but if the stable growth of the faster coins will probably have an impact on the market, of course usdt be the top because it becomes the first stable coin.

[gwaposakon]

The popularity of stablecoins are gaining big supporters that a lot of crypto projects are directed to it. They don't have the volatility similar to other crypto assets like bitcoin and other altcoins, that is why stablecoins have become popular in the digital-currency industry. I do though agree that they are getting saturated in the market, stablecoins stabilize an otherwise volatile cryptocurrency ecosystem.

[devil2man]

in my opinion stable coins are useful to be able to maintain a certain balance on the various markets apparently all the big exchanges have their own but in my opinion it's okay this way

[thesmallgod]

Usdt remain the top rank and there has been so many backlashes about bitfinex minting the usdt. I created post similar to this a few weeks ago and the replies I got makes me realized it is not advisable to keep holding this stablecoin as users can lost their holding if this stablecoins go sour. We know people use them to mitigate the lost due to market volatility but they do not represent the real feature of cryptocurrencies.

[irixo10]

Just as there are many altcoins even in cases where there are repeated ideas same is the case with stablecoins, each of these stablecoins believes they can offer something better and different while in reality, they are all the same. In the case of USDT, yes it is the top stablecoin with huge number of users despite having questions which begs for answers; however I do think that why most people likes Tether is owing to the fact it has huge volume and if course hype. Lastly, yes the market is saturated with many stablecoins and I don't think there is anything that can be done about it other than being careful of the ones we associate with.

[kindbtc]

I've noticed an increase of stablecoins on the market over the past few years. There are now many different types of stablecoins for USD, EUR, and other top Fiat currencies in the mainstream world. Some of them are legit, while others are just pure hype (scam). To my surprise, Tether (USDT) is the top stablecoin in market cap. For a company which often lacks transparency of its USD holdings, I think that Tether is just an over-hyped coin that will see its bubble burst real soon.

As far as other stablecoins go, I believe that people will only choose those that are on the top ranks in market cap. I wonder if so many stablecoins are actually needed or necessary for the blockchain industry to thrive? Do you think that the market is really saturated with too many stablecoins? Or is it still fine?

What are your thoughts?

I do not about others but for me usdt and usdc are enough, i was using usdt to trade from longtime but the difference now is i have started using usdc as well, it is good to have options but too many stablecoins will mean too many same projects that will not serve the purpose because the solution is already there in the market so why not do something unique.

[Baofeng]

I think we have to look at what's the real purpose of stable coins in the market? Will it bring that "stability" or will it make us confused more with their usage, specially noobs in the market. And we all know that the number 1 stable coin today has a lot of accusations of manipulations in the past. Obviously, Tether and Bitfinex has denied and said. that this is baseless. But if this stable coins allegedly is playing the market around then we might need some alternatives.

[hatshepsut93]

Competition is always nice, it's better to have multiple coins than just Tether dominating this field without anyone to keep them on their toes. Just like with the rest of alts and tokens, the market will sort it all out in the long run. There will always be at least a few coins, because relying on just one stablecoin sounds risky - what if Tether will decide to go rogue and we'll have no plan B?

I had some experience with DAI and it was generally positive. Same goes for Tether. I think smaller stablecoins, especially those backed by smaller currencies, aren't very useful, because people generally prefer US dollar over a weaker fiat currency.

[Scripture]

I think we have to look at what's the real purpose of stable coins in the market? Will it bring that "stability" or will it make us confused more with their usage, specially noobs in the market. And we all know that the number 1 stable coin today has a lot of accusations of manipulations in the past. Obviously, Tether and Bitfinex has denied and said. that this is baseless. But if this stable coins allegedly is playing the market around then we might need some alternatives.

We have to get other options so we can differentiate and know what's better for us. Yes, there's a lot of manipulation on Tether whether they admit it or not but we know its happening. If there's so many stablecoins then at least we can have an assurance to make money while the market is full of risk.

If there's more stablecoins to come, maybe many businesses will adopt it since we know the problem on a slow production is simply because of the high volatility, that prevents them to adopt.

[bbc.reporter]

The market is saturated with not only stable coins, also defi stable coins! This is similar to the market's saturation with ICO tokens on 2017, I reckon and this might lead to a mass extinction of altcoins.

[Lagduf]

in my opinion stable coins are useful to be able to maintain a certain balance on the various markets apparently all the big exchanges have their own but in my opinion it's okay this way

This is about how good the competition between all of the stable coins that are exist in the market. As long as these stable coins are fully audited and there was no problem with it and it can be considered as a new money for crypto too.