FxPro: Сryptocurrency market fell asleep. Again

Cryptocurrencies remain trapped in a tight range, continuing to experience the crisis of idea as a whole. Bitcoin is wandering around $ 3,700. However, the current situation revives the memories of the summer lull, which later turned into a new wave of decline to multi-year lows.

According to the cryptocurrency dynamics, coins are clearly experiencing a shortage of drivers in one or another direction. Luzius Meisser, the pioneer of blockchain development in Switzerland, believes that the next market triggers are stablecoins and tokens with the official status of stocks, which will give investors real rights, and not just an opportunity to be part of a crowdfunding campaign.

It should be noted that the modernization of ICO in the direction of the IPO model will close access to the market for non-professional investors. The transformation of the stablecoins into the basis of the new crypto market is less often indicated by experts as a possible reason for the digital currency’s revitalization. However, the stablecoins are backed by the real assets, as well as they are regulated. In the future they can become a substitute for fiat currencies in the digital world.

New stablecoins took into account the mistakes of the original USDT and demonstrate willingness to do business transparently. For example, an analysis of the auditing company Grant Thornton LLP showed that the stablecoin USDC from the Circle company is secured by with real fiat money. Other leading stablecoins Gemini and Paxos also underwent a similar audit, confirming their assets. The banking system fears the volatility of crypto assets, so new projects may arise precisely on the basis of price-stable tokens with the guarantee of the rights for all participants.

It should be noted that the most well-known blockchain supporters – Winklevoss brothers – are concerned specifically with the direction of the stablecoins. It is likely that in the future their assets in Bitcoin will “migrate” to the Gemini Dollar capitalization, and the entire crypto market will get a breath of fresh air, since it is obvious that the current model based on “pumps and dumps” no longer shows signs of life.

Alexander Kuptsikevich, the FxPro analyst