The stablecoin market is attracting cryptocurrency traders’ attention these days. In fact, traders look for a price-stable asset in order to store value. In addition, banks and financial institutions also started to use stablecoins. Now the question comes up is that, if banks joined the stablecoins market, then what would happen to Ripple? In this article, we are going to take a look at stablecoins vs. ripple.
Stablecoins Vs. ripple; Tether as a first stablecoin
The first stablecoin, Tether (USDT), launched in 2014, which pegged to U.S dollar. After, several years it could gain adoption by many traders in order to use in crypto trading pairs. As a result, during 2017 many exchanges switched from fiat-to Bitcoin trading pairs to USDT/BTC. After a while more stablecoins appeared in the market in hope to gain the popularity as much as USDT.
Today, stablecoins are changing their role from pure trading assets to use as new payment retail. In fact, most of the banks and financial institutions interested to use stablecoins for digitized money transfers and payments.
Ripple feels pressure
Furthermore, the projects like Facebook Libra, which targeted as a consumer-centered B2C (business-to-consumer) are on the way. With the evolution of the stablecoin market and the growth in its adoption by banks and companies, the Ripple (XRP) is feeling pressure. In fact, Ripple is going to face challenges, because most banks and firms are showing attraction to stablecoins more than Ripple.
Stablecoins Vs. ripple; The Ripple future is under question
Ripple is a low-cost, high-speed, blockchain-powered coin, which is used as an alternative payment option. It focused on interbank payment network. In fact, it planned to enable banks, digital assets exchanges, payment providers and institutions to send money globally using its advanced blockchain network.
Although Ripple had a good performance to this date, stablecoins are the most serious competitor of Ripple.
Financial Times reported that Ripple could stay profitable in the market, because it’s selling its XRP holdings to retail investors. If, this report be true, then Ripple failed in order to gain adoption by major institutions, banks, and companies. Stablecoin could gain better success compare to Ripple.