Crypto - Tether launches Alloy: A stablecoin backed by gold!

The crypto industry is experiencing a spectacular breakthrough, in particular thanks to the massive support of stablecoins. In four years, stablecoin transfers have exploded by 1,500%, reaching a record monthly volume of $1.68 trillion in April. This massive adoption illustrates the growing confidence of investors and the integration of these assets into traditional financial systems, thereby disrupting the global economic landscape.

Phenomenal growth in stablecoin transfers

Stablecoin transaction volume – Source: Token Terminal (X)

Since October 2020, the volume of stablecoin transfersa highly valued asset in Europe, grew 16-fold from $100 billion to an impressive $1.68 trillion in April 2024precise Token Terminal. This growth illustrates the mass adoption of stablecoins, bolstered by their crucial role in crypto trading and providing liquidity on DeFi platforms.

Despite a slight decline in May 2024, the overall trend remains positive, supported bygrowing integration of stablecoins into traditional payment networks. Their market capitalization combined exceeded $162 billion, a 24% increase since January.

This increase reflects a renewed investor confidencewho view stablecoins as a hedge against the volatility of cryptocurrencies.

Stablecoins, pillar of the crypto industry

The rise of stablecoins is not limited to DeFi platforms. They also play a central role in international payments and daily transactions.

Visa reports that approximately $3.3 trillion in stablecoins are traded every month, highlighting their growing importance in the global economy.

Stablecoins offer a practical and secure solution to bypass traditional banking systems, facilitating cross-border payments and salaries.

Furthermore, the regulatory clarity in multiple jurisdictions builds trust in these digital assets. However, challenges remain, particularly in terms of governance, operational resilience, and legal compliance.

Future U.S. policy on stablecoins will be instrumental in their continued adoption and impact on global financial stability.

The rise of stablecoins is radically transforming the crypto sector. What will be their future role in the global economy?

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