Second Generation Stablecoins Propel Next Wave of Crypto Adoption by Cryptovest

Following the rise and fall of the 2017 bull run and the subsequent crash in 2018, the blockchain sector has reached a crossroads. A major obstacle to progress is the limited real-world adoption of the technology. Despite considerable institutional interest, substantial financial investments, and numerous proposed applications, the practical use of blockchain remains minimal. Many individuals engaging with cryptocurrencies primarily function as traders, moving between various digital assets, most of which are simply utilized for trading rather than practical applications. This raises the question: where is the envisioned decentralized token economy?

The volatility inherent in cryptocurrencies has significantly impeded their acceptance as a stable form of money. Traditional money serves three essential functions: it acts as a unit of account, a store of value, and a medium of exchange. However, most cryptocurrencies only fulfill the role of a medium of exchange due to their extreme price fluctuations. This situation has led to a rise in stablecoin initiatives—digital assets linked to more stable currencies like the US dollar. Even with the increased understanding of these stable assets and the growth in decentralized finance, which boasts significant investments locked in smart contracts, many individuals are still unfamiliar with concepts like Tether or Dai. Moreover, this does not address the real-world challenges faced when attempting to utilize blockchain technology.