Stablecoins are presently leading the race. Many companies are collaborating to encash this opportunity. Another venture that is grabbing headlines happened between RenVM and ICHI, which are coming up with DeFi based stablecoins to get a hold of the market.
ICHI and RenVM have joined hands in developing decentralized stablecoins available for Zcash, Dogecoin, Bitcoin, and other cryptocurrencies, including Ren. These communities will not have access to governing their stablecoin for reliable transactions. The entire setup is finally according to Satoshi Nakamoto’s vision of an electronic peer-to-peer cash system.
The buzz for stablecoins has been trending for some time now. Stablecoin cryptocurrency denotes the stability of $1 value. Traders have turned to Tether and USDC to dwindle the exposure due to the falling prices of Ethereum, Bitcoin, and others. All this has spiked stablecoin popularity. Presently, the stablecoin market is approximately $100 billion in value.
The stablecoins are pushing the cryptocurrencies to greater risk by spiking the severity of market declines. The mechanism is similar to stocks – when crypto is sold, the value diminishes.
ICHI’s DMA (Decentralized Monetary Authority) solves the problem of diminishing crypto value by enabling any crypto joint to create stable coins supported by a blend of fiat stable coins and native coins. This will spike the demand for native coins and ensure that the value remains intact in the community. The latest partnership will create stable coins for famous cryptocurrencies like Bitcoin, Ethereum, Dogecoin that RenVM will bring on Ethereum Blockchain. All this will eventually enable cryptocurrencies to utilize the variety of DeFi (Decentralized Finance) apps across the ecosystem of blockchain.