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You could have heard that one of the crypto market newest trends is stablecoins. This is obvious, taking into account the volatility and the fall of the market we all have seen in 2018. Stablecoins are aimed at maximizing a stable price and are the only way to save money for lots of crypto holders these days.
How exactly will the stablecoin industry develop? Can its leader, Tether, lose it dominance? We interviewed representatives of 10 leading stablecoin projects and here are 5 stablecoin market trends you’ll most likely see in 2019.
Number of Stablecoin Projects Will Grow
The majority of stablecoin projects, that were polled, are looking optimistically towards industry development.
Dima Vol, Board Member of Mile Unity Foundation that promotes MILE stablecoin says:
“The stablecoin industry will proceed with development in 2019. More projects will come, but not everyone will be successful.”
Ali Datoo, Business Development Executive of AAA Reserve currency agrees with that:
“Hopefully we’ll be able to see more pegged stablecoins, and hybrid ones that may feature 50% of each currency to allow swapping between the two with ease.”
Shaun Djie, COO & Co-Founder of Digix, said expressing his view:
“Stablecoins will continue to provide the gateway to mass adoption due to the familiarity of dealing with a reference currency.”
Tether Likely Maintain Its Dominance
“Tether will maintain their position but the market will grow”, says Daniel Jan Neetzel, Co-Founder at NOS.cash.
Other projects expressed the same view.
Gregory Klumov, Statis CEO & Founder emphasised that Tether’s future is very much connected with the market and a demand for an alternative. He said:
“Short term funding for the biggest stablecoin projects will expire and we will see a reality check (i.e. where real demand is to replace Tether with other USD coin).”
Still some market participants are not so optimistic about current industry leader.
“I anticipate that another USD-backed stablecoin (likely TUSD) will gain a $1B+ market cap,” thinks Ryan Rodenbaugh, Business Development Lead from TrustToken (TrueUSD), “Tether will lose its significance in the cryptocurrency markets or at least see it’s dominance extremely diminished.”
Stablecoins Start to Implement in Remittance
“I think we will see stablecoin adoption beyond just being used as the quote currency on exchanges and we will hopefully start to see P2P and cases of remittances use take off”, expressed Rodenbaugh.
Søren Peter Nielsen, Head of Product at MakerDAO agrees with Mr. Rodenbaugh. He says:
“In 2019 we expect to see businesses start to adopt crypto as a way to streamline operations and find efficiencies. For example, businesses will start integrating with blockchain enabled remittance systems.”
Stablecoins will also get more attention from business, thinks David Berger, Technical Advisor from The White Company (White Standard). The reason for that is that companies are not prepared to deal with the volatility of non-fiat backed tokens.
“Lawyers, for example; are warned that if they accept bitcoin that they must immediately convert them to USD as they could be disbarred for charging unreasonable fees which could happen in a matter of hours with bitcoin price fluctuations. A stablecoin would not have that issue,” says Berger.
Huge Corporations Will Come to the Market
“In 2019 there will be at least one big corporation launching their stablecoin,” states Daniel Jan Neetzel, Co-founder of NOS.cash.
Andrey Peshkov, CEO & Founder of Lighthouse Blockchain, agrees with that:
“Big tech corporations will emerge and enter the stablecoin-inspired race to develop that one “killer app/product.”
The majority of our respondents expressed the same view, still some don’t believe the stablecoin market, in some perspective, will become interesting for huge corporations.
“I don’t think huge companies will come to the market. All the latest news about Facebook and a stablecoin for WhatApp, in my opinion, were simply rumors. Many media websites create them to increase readership or to create some hype in the industry”, says Hosam Mazawi, Marketing & Business Development from Alprockz.
Competition Will Grow, Weak Projects Won’t
The stablecoin industry is going to develop, so competition will grow. According to the latest study made by Blockchain.com there are already 57 active stablecoin projects and more to come.
“In 2019, it will become obvious that the world does not need 50+ stablecoins. I think teams will realize that while the tech for fiat collateralized stablecoins is not that difficult to build out. The infrastructure (banking, legal, etc.), business development and community efforts are the real barriers to growing a stablecoin,” said Rodenbaugh from TrustToken.
The most competitive stablecoins will be those that could be used in the real economy thinks Dima Vol from Mile Unity Foundation:
“That’s certain, that the market needs stablecoins to bridge the real economy, as well as for commodity circulation between countries and cryptocurrencies, carrying decentralization and transparency principles.”
