Dollar-independent stablecoin will become Ethereum's “killer” - opinion

By World Crypto | World Crypto | 5 Jul 2020

The Ethereum ecosystem can still lose its primacy, but only on one condition.

The leader in the field of deployed smart contracts and the Ethereum blockchain sandbox can lose its popularity only in one case - with the emergence of dollar-independent stablecoins.


This opinion was expressed by the head of the product of the analytical resource Messari Qiao Wang.

In 2020, one of the main factors behind the growing popularity of the Ethereum blockchain ecosystem was the emergence of the Tether stablecoin (USDT) based on the ERC20 protocol.

According to Wang, the Ethereum ecosystem does not focus on a more potential product - independent stablecoins.

“No matter which ETH killer successfully issues a stablecoin other than the US dollar, it has the best chance of overtaking ETH. I would venture to say that this is the only way to get around ETH, given the network effect. This is the most obvious missing piece in the Ethereum ecosystem, ”Wang wrote on his Twitter page.

Reinventing the wheel

Wang believes the self-named ETH killers are doomed to fail due to a copy of the spirit and vision of the Ethereum platform.

“It is impossible to copy the leader [in the market] and still hope for victory. This is what almost all ETH killers are doing now. It just won't work. You have to do something special, ”Wang said.

One of the reasons why selling stablecoins without being tied to the dollar is extremely difficult - countries with negative interest rates and other macroeconomic factors.

However, Van is confident that as soon as one of the largest cryptocurrency exchanges carries out a listing paired with such a stablecoin, the digital asset will receive strong organic acceptance in the DeFi market.


Be that as it may, the market for stablecoins is getting tougher every year, and the emergence of new independent digital assets is less likely.

Nonetheless the European Union intends to update cryptocurrency regulation, which may create difficulties for a number of stablecoin projects, including Libra.

Valdis Dombrovskis, Vice President of the European Commission at the Digital Finance Outreach 2020 event, said that Europe should not miss the opportunity to become a leader in the regulation of digital finance.

However, what exactly will be the effect for the virtual currency industry from such regulation remains unknown.

What do you think? Could the emergence of a dollar-independent stablecoin affect Ethereum leadership? Share your thoughts in the comments!

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