Why are stablecoins DAI (DAI) and USD Coin (USDC) seeing increases in investors right now? At the time of writing, their market caps have both increased, whilst the rest of the market flounders. This is a question many prospective investors might scratch their heads over, given the downtrend of the crypto market following the FTX crash.
In this article, I will be looking at why stablecoins like DAI (DAI) and USD Coin (USDC) are so popular right now, as well as some of the reasons for the recent frenzy for up-and-coming meme token Big Eyes Coin (BIG).
What Are Stablecoins?
Stablecoins are cryptocurrencies that are pegged to a stable asset, such as a fiat currency or a commodity, in order to reduce price volatility. The goal of a stablecoin is to provide the benefits of a cryptocurrency (such as fast, cheap transactions) while maintaining a stable value.
Stablecoins are useful because they offer a way to store and transfer value in a stable manner, even in volatile market conditions. For example, if you are worried about the risk of volatility of a cryptocurrency like Bitcoin (BTC) in an unstable market, you could use a stablecoin instead. Stablecoins are also useful for carrying out transactions in which stability is necessary, like paying invoices, or salaries of employees.
In addition to their stability, stablecoins also offer many of the same benefits as other cryptocurrencies, such as fast, cheap transactions and the ability to transfer value peer-to-peer. This makes them a useful tool for conducting transactions and storing value in the cryptocurrency ecosystem.
Why Are DAI And USD Coin So Popular?
DAI (DAI) is a decentralised stablecoin that is collateralised by Ether (ETH), the native cryptocurrency of the Ethereum blockchain. It is popular because it is decentralised, meaning it is not issued or controlled by any central authority, and because it is transparent, with all transactions and reserve balances recorded on the Ethereum blockchain.
USD Coin (USDC) is a stablecoin that is issued by regulated financial institutions and backed by a reserve of US dollars held in a bank account. It is popular because it is fully collateralised by US dollars, which are a stable and widely accepted currency, and because it is issued by regulated financial institutions, which may provide some level of assurance to users. Whilst DAI uses a decentralised network of users with smart contracts on the Ethereum blockchain to issue its currency, USD Coin is issued by regulated financial institutions.
One key reason why many people prefer DAI over USD Coin is its transparency. DAI is completely transparent, with all transactions and reserve balances recorded on the Ethereum blockchain. On the other hand for USD Coin, the details of the reserve holdings and audit processes are not made publicly available.
Big Eyes Coin: The Hottest New Meme Coin
What is Big Eyes Coin (BIG), and why is it selling so fast? Investors are swarming to invest in Big Eyes Coin (BIG), a brand-new meme coin on the Ethereum network. Given that it sold over $13 million this past weekend, it is easy to see that its momentum will only grow.
Big Eyes Coin is in pre-sale and so right now operates outside of the crypto market. In a similar vein to stablecoins, holding Big Eyes Coin is a way of investing in cryptocurrency, whilst not getting exposed to volatility. Take advantage of the pre-sale to buy as much Big Eyes Coin as you can before it launches later this year. By picking it up at pre-sale price, not only will you be protecting your crypto investments from the market swings, but you’ll also maximise your potential gains!
Wrapping Up
One of the key reasons that Big Eyes Coin and other stablecoins like DAI (DAI) and USD Coin (USDC) are selling so fast, is that they are immune to the wild volatility of the crypto market, especially during a time of rampant uncertainty, fear and doubt of crypto’s future. Cryptocurrency is not going anywhere. Like the Internet revolutionised our world and gave us countless new possibilities and opportunities, cryptocurrency will do the same. During this bear market, have a look into stablecoins and pre-sale coins like Big Eyes Coin. You won’t regret it!
Use promo code BIGsave968 for bonus tokens at checkout!
Big Eyes Coin (BIG)
Presale: https://buy.bigeyes.space/
Website: https://bigeyes.space/
Telegram: https://t.me/BIGEYESOFFICIAL