Stablecoin Settlements Up 15% to $7 Trillion in 2022

Stablecoin adoption continues to go up to $7 trillion in 2022, despite bearish conditions in the crypto market.

Stable Coins Dominate Settlements

According to Coinmetrics, stablecoin settlement is set to increase by 15% to $7 trillion in 2022, compared to 2021, when it topped $6 trillion.

The value settled could reach $8 trillion in the remainder of the year. Patrick Hansen, EU director of strategy and policy and financial advisor, compared the settlement in the stablecoin with the amount mastercard settled, He indicated that the amount was higher than what Mastercard had paid. USDC dominates stablecoin development.

stable coins Cryptos are an important part of the economy in the current world. Despite the recent bear market, the amount of coins pegged to fiat continues to dominate most exchanges.

What makes stablecoins trendier?

The debate over the comparison between stablecoin usage and credit card transactions continues to thrash crypto Twitter from analyst to analyst. Most users have indicated that the comparison does not hold weight as they are different. The difference between them is clear as credit cards reflect consumer spending, whereas stablecoin settlement is a transaction for crypto trading.

Furthermore, the currency used in credit card transactions is the US dollar. At the same time, the value of the stablecoin is pegged to the US dollar (indicating that it could be lower or higher). According to CryptoQuant, although USDT has faced volatility in the past few months, it continues to hold the market.

Regulation on Making Stablecoins Usable

It is currently not possible to use stable coins for day-to-day purchases as no proper regulations allow their use in the market, as compared to Mastercard and Visa. Seeking to remove the barriers, US Congressman Pat Toomey, who is set to serve out his term, is looking to change the conditions by introducing a stablecoin bill.

Senator Pat Toomey Bill Proposes that financial regulators allow non-bank and non-state entities to issue stable coins. They will be allowed to do so if they require a license from the US Office of the Comptroller of the Currency (OCC) with proper backing of tangible assets.

Market capitalization of stablecoins

Data from CoinGecko indicates that the market capitalization of stablecoins currently stands at $140 billion, which is approximately 16.5% of the entire market. major stablecoins by supply There is USDT issued by Tether with 66.3 billion USDT. USDC comes with 44.3 billion in market supply. The combination of USDT and USDC makes up about 80% of the entire market.

Stablecoin adoption continues to go up to $7 trillion in 2022, despite bearish conditions in the crypto market.

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