, 2022-05-14 05:00:51,
Lightning Labs CEO says its new Taro upgrade will enable enhanced smart contracts and stablecoins on Bitcoin’s (BTC) blockchain.
- The recent double-digit drop spanning the cryptocurrency sector is a stark reminder of how volatile this asset class can be.
- Massive price swings in the past resulted in the creation of stablecoins, which are pegged to another asset such as gold or the U.S. dollar to greatly reduce erratic moves.
- Most stablecoins run on either the Ethereum or Binance blockchains — none on Bitcoin’s — but Lightning Network’s Taro protocol will likely enable the first BTC-based stablecoin.
The broad crypto sell-off that’s occurred over the past days and weeks has driven the total value of the cryptocurrency market to $1.51 trillion — the lowest capitalization level for that asset class since Aug. 2021, according to crypto tracking website CoinGecko.com. As the leading individual crypto by market cap, Bitcoin (BTC) is down more than 55% from its peak price of $69,000 set in Nov. 2021, according to CoinMarketCap.
This wild price action of late is a clear signal the volatility across cryptocurrency exchanges is real, and serves as a reminder regarding the important role that stablecoins can play to protect gains of crypto investors.
How stablecoins help crypto investors
Major price swings in the past resulted in the creation of stablecoins, which have their respective value pegged to another asset such as gold, the U.S. dollar, or a commodity….
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