Second Generation Stablecoins Propel Next Wave of Crypto Adoption by Cryptovest

Following the fluctuations of the 2017 bull market and the subsequent crash in 2018, the blockchain sector currently finds itself at a crossroads. A significant barrier to progress is the lack of real-world adoption. Despite a wealth of institutional interest, billions in value, and numerous proposed applications, the practical usage of blockchain technology remains limited. Many individuals engaging with cryptocurrencies are primarily traders who move between digital assets without any real utility for the currencies themselves. This raises the question: where is the decentralized token economy envisioned for the future?

One of the major obstacles to adoption is stability, or rather the instability of many cryptocurrencies. The three essential functions of money are to act as a unit of account, store of value, and medium of exchange. However, most cryptocurrencies primarily fulfill the role of medium of exchange due to their erratic price swings. This gap in functionality has led to an increase in stablecoin initiatives—assets that are pegged to stable currencies like the US dollar. Nevertheless, despite the straightforward nature of these assets and the growth of decentralized finance, which has seen an increase to $650 million locked in smart contracts from $400 million the previous year, a large number of people remain unfamiliar with stablecoins like Tether and Dai. Furthermore, challenges persist for users attempting to engage with blockchain technology effectively.