Stablecoins are booming amid the coronavirus crisis

Stablecoins are booming amid the coronavirus crisis

By Ryan Osborne | RaiseHQ | 13 May 2020

In uncertain times, stability is key. As healthcare systems the world over experience an  unprecedented challenge, so too does the global financial market. And as a revolutionary financial technology, crypto faces its biggest challenge yet.

While many cryptocurrencies have fallen during the coronavirus crisis, stablecoins are booming, living up to their name and proving their value. It’s very timely, then, that Raise is adding two new stablecoins to its platform – USD Coin (USDC) and Tether (USTD) – both of which have seen big gains during this time of uncertainty.

The rise of stablecoins during the coronavirus crisis

While economic systems the world over have suffered during the coronavirus crisis, stablecoins are booming. 

If you’ve never heard of stablecoins before, simply put, they are cryptocurrencies that offer the same benefits of other crypto coins but with a lot more stability. For this reason, stablecoins have seen a major boost in this time of financial instability.   

In a volatile marketplace, where value can swing in an instant, stablecoins offer security for traders and investors. They give you the option to ‘store’ your assets without worrying about volatile shifts and market fluctuations. In short, stablecoins are exactly the kind of asset you’d want at a time like this.

Usually, stablecoins are pegged to commonly used FIAT currencies, such as the US dollar, the Euro or the British pound. Some are even pegged to commodities such as gold. 

USDC sees massive growth

When the storm kicks in and the waves get higher, you need a lifeboat. That’s what stablecoins are. They essentially give investors and traders the chance to maintain their crypto portfolio without the need to cash out to FIAT. 

Because of this, USD Coin – one of Raise’s two new stablecoins – has seen massive growth during this time of volatility. Since February, when coronavirus started to have a profound effect on markets around the world (both fiat and crypto) USDC has grown – its market cap has shot up from $520 million to $750 million. That’s almost a 50% increase, in a time everything else is in decline. 

Tether remains #1 stablecoin with huge leap

From the middle of March to the beginning of April, Tether (USDT) saw a huge leap. Its market cap shot up from $4.6 billion to $6.3 bilion – a 37% increase in the space a few weeks. This massive increase has helped Tether to remain the world’s #1 stablecoin.

Why have stablecoins enjoyed such a boost? 

Many investors are using stablecoins as a risk protection tool. While coronavirus causes unprecedented damage to societies in many different ways, people are looking for extra security – particularly financial security.

While some investors are moving their volatile assets into fiat currency, like the US dollar, many crypto investors are looking to USD-backed stablecoins for long term stability. This allows traders and investors to sit tight and plan for the future.

Hedging your bets and minimizing risk is essential during times of volatility. Investors are increasingly looking for stability, as well as ease of use, transparency and low cost fees. 

This is why, for digital investors, we are entering the era of the stablecoin.

Make your money grow in this time of economic uncertainty – get started with Raise today and take full advantage of the phenomenal growth of stablecoin.

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Ryan Osborne
Ryan Osborne

Originally from the south coast of England, I moved to Barcelona to pursue the good life. As a tech and lifestyle writer, I help companies and startups develop their brand, locally and internationally.


Raise is a loan marketplace that connects individuals with investment opportunities primarily in emerging countries

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