Like any crypto enthusiast, our team took a moment to celebrate the big $50K this week. Celebrations were then quickly followed by scrolling Twitter for the latest #cryptotwitter memes.
While scrolling through our meme-filled feeds, we couldn’t help but notice .....
The amount of U.S. stablecoin activity happening on the @whale_alert's Twitter!
Check this out:
This got us wondering ...
Why, during a “bull run” for a decentralized currency, are U.S.-backed stablecoins buzzing with activity?
Fortunately, this isn’t the first time a cryptocurrency expert scratched his (or her!) head over this question.
Let’s take a look at a research project, The Influence of Stablecoin Issuances on Cryptocurrency Markets, conducted by Lennart Ante and Blockchain Research Lab for some answers.
First, let's look at Investopedia for some working definitions:
Two Sides of Different Coins
Using the above definitions, one can clearly see, stablecoins and decentralized currencies are two completely different coins with two completely different surfaces.