Yesterday was a unique experiment in the world of crypto, one that we don’t see very often. Altcoins rallied to the top of the charts with double-digit gains. In fact, 8 out of top 10 cryptos from yesterday posted a double-digital growth. That is impressive by any standards. However, the loser chart was littered with stablecoins. Indeed, the loser chart toppers were all stable coins.
The supposedly “stable” coins were the worst performers of the day en masse. So, what happened?
Well, crypto users hold their funds in stable coins when they expect the market to go down. When the cryptos show signs of recovery, users pull their funds out of stablecoins and invest in cryptos with high growth potential. So, when the crypto market rises suddenly, stablecoins fall in value. This contrast is laid bare when you compare the best-performing tokens against the worst-performing.
Tether (USDT)
As the biggest stablecoin in existence, Tether (USDT) has proven that stablecoins work by and large. In fact, Tether’s USD pegging has faltered only on a handful of occasions. Even then, the deviations in Tether’s value have been small. The biggest deviation was way back in 2017 when Tether lost 8% of its value, only to bounce back quickly to its pegged value. And, that has its uses.
For businesses and developers, who make crypto transactions routinely, fluctuations in the crypto process can be devastating. So, Tether’s stability brings predictability to their transactions. Also, in bear markets like the current one, Tether can preserve your crypto funds until the bearish winds pass over.
However, Tether does not help you cash in on crypto’s extreme volatility, which is what helps savvy investors build a fortune. For instance, even as cryptos like Snowfall and Dash registered double-digit gains yesterday, Tether remained unmoved, which is what it was intended to do anyway.
Dai (DAI)
Dai (DAI) is another major stablecoin with over $5 billion market cap in late 2022. Unlike Tether, Dai is soft-pegged to USD and its value fluctuations quite a bit. In early 2020, Dai’s price fluctuated by over 90%. Even last year, Dai’s value fluctuated by as much as 10% in each direction. As stablecoins go, Dai is less reliable than a token like Tether, but it’s still a much safer instrument than a regular crypto. For investors, however, Dai’s fluctuations can be a reminder of Terra’s unprecedented crash, making it seemingly less reliable for long-term investment.
Snowfall Protocol (SNW) is a multi-chain bridge that connects multiple blockchains with one another, allowing transfer of funds, information, and assets between the blockchains.Snowfall Protocol (SNW) is connecting all the major cryptos, exchanges, NFT marketplaces, and other blockchains with one another. The project is so ambitious that Snowfall token has shot up in value by 300% since its presale last month. By the time of its launch, it’s expected to grow by 5,000%. Just yesterday, Snowfall Protocol (SNW) registered a gain of 19.8%.
As the cryptos rallied for the top spot, Snowfallprotocol.io (SNW) sat atop the “Top Gainers” list, leaving the second-best-performing crypto behind by a comfortable margin.
Website: https://snowfallprotocol.io
Telegram: https://t.me/snowfallcoin
Presale: https://presale.snowfallprotocol.io
Twitter: https://twitter.com/snowfallcoin