People will always want to buy something which is of use not just to buy for the sake of buying. Crypto currencies are now popular and their market capitalization is always increasing, from $10 billion in 2013 to $566 billion in 2017 then on 2018 it went down to $128 and currently it’s around $240.

If you noticed well there was a time were crypto currencies were shooting and going higher on daily basis and the numbers can prove that as well as the numbers do not lie, at the end of 2017 the crypto market capitalization fell with almost $440 billion.

What led to the fall in capitalization?

It is claimed that the bitcoin market was manipulated by an unidentified bitfinex account and it drove the price of bitcoin down and the crypto market fell so hard and the market capitalization of Tether increased and it was now the most liquid token. So maybe this could be the reason for this could be the reason for the decline in market capitalization.

Another reason for the fall could be that crypto currencies were facing too much criticism including all other currencies and it casted doubt on the investor and people liquidated their crypto portfolios and went for other investments not related to crypto currencies as crypto was now being seen as a bubble.

A rebound in market from 2019

Was it a coincidence that stable coins started dominating in around 2019 and the market capitalization started to increase as it is now at around $240 billion? It might be because by that time more stable coins came to light and the market started stabilizing. They proved to be a savior to the declining market and the markets raised again.

Currently we have so many stable tokens on the market and their market capitalization is always increasing though bitcoin is the biggest currency with a higher capitalization but currently in the top 5 crypto currencies we have a stable coin called Tether USD and it is the most promising.

The future of stable coins It is undeniable that stable coins are soon to become the future of the digital payment system for a number of reasons:

Decentralised. They are decentralised and there is freedom of use and no limitations and interference from authorities.

Stable. Their value is very stable and not volatile as compare to the rest on the crypto currencies since they are backed by other assets which include fiat currencies, crypto currencies, commodities and collaterals.

Conclusion

Therefore any merchant would want something stable for their business not to accept coins that can lose or increase value overnight. So stable coins are likely to overtake volatile crypto currencies and their market capitalization is also likely to rise.