Kaiko Research reported this week that stablecoins are increasingly acting as the foundation of crypto markets, providing liquidity and stability amid volatile price movements.
Stablecoin Dominance and Market Impact
According to the report, stablecoins now account for a significant share of crypto trading volume, with USDT, USDC, and DAI dominating the sector. Their consistent peg to the U.S. dollar has positioned them as reliable mediums for trading, hedging, and cross-border transactions. Kaiko emphasized that their integration into both centralized and decentralized platforms has helped smooth volatility spikes, improving market efficiency and accessibility.
Expanding Adoption Beyond Exchanges
The study highlights growing adoption of stablecoins beyond exchanges, particularly in payments and remittances, where transparency and speed are attracting institutional and retail users alike. Analysts suggest that as regulation matures, stablecoins could serve as the bridge between traditional finance and decentralized ecosystems.
The information presented in this article is for informational purposes only and should not be interpreted as investment advice. The cryptocurrency market is highly volatile and may involve significant risks. We recommend conducting your own analysis.