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Tron (TRX) brought USDT to its blockchain through a solid partnership with Tether about two months ago, with zealousness to get people properly informed about stablecoins and the utilities it brings to cryptocurrency market while also enhancing global adoption of digital currencies.
Damages of Volatility to Cryptocurrency Market
Volatility is a term that is associated with unpredictability and instability, and these are parts of the negative features of cryptocurrency market. A volatile market can also be termed as a “very risky market” that is not desirable for retailers and businesses that are looking forward to a predictable and stable market prices.
Moreover, some traders and customers are avoiding purchasing goods and services with digital currencies that could suddenly experience a surge in price, leaving them with feelings of being cheated. A good example of this was when Bitcoin (BTC) market price suddenly surged by 20% in just a day in April 2019, such could be a good news for the investors, but could the euphoria be the same with the customers that just made a purchase with BTC before its market price spiked up?
Some use cases for cryptocurrency have not delivered as expected due to their constant value instability, like markets for global remittance (funds sent home by people working in another country) and cross-border payments. According to World Bank, remittances account is approximately 700 billion US Dollars, the value that will statistically increase by 25 percent between 2019 and 2024.
So, volatility is really creating a lot of damages in the cryptocurrency market, discouraging some capital investors from plunging their hard earned fortunes into a market they believe is unpredictable. This is where stablecoins like USDT-TRON is believed to come in with its well-structured market stabilizing utilities.
Benefits of the USDT-TRON Stablecoin to Tron (TRX) Ecosystem
The newly added stablecoin, USDT-TRON, came with lots of benefits to TRON ecosystem. The emergence of the stablecoin has enlarged the existing use cases in its decentralised and retail sectors, such as making decentralised applications (DApps) in line with TRON protocol compete with Stripe and Paypal payments between merchants and shoppers.
TRON Foundation CEO, Justin Sun said “[TRX-USD] is based on the smart contracts, so you can do lots of the deployment work on top of the USDT, which Omni blockchain cannot offer.”
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Moreover, the USDT-TRON is expected to increase liquidity of cryptocurrencies, giving individuals and businesses assurances of financial safety in digital currency investment, and this will likely fast-track its global adoption.
“[TRX-USD] is based on the smart contracts, so you can do lots of the deployment work on top of the USDT, which Omni blockchain cannot offer.” — Justin Sun, CEO, TRON Foundation
Stablecoins Educational Series Hosted by Tron
During the stablecoins education in San Francisco, the CEO of Carbon Money, Sam Trautwein, introduced stablecoins in details to the audience, stressing the benefits of digital currencies without volatility. Trautwein added that stablecoins bridge the breach between legacy and future banking.
The panelists in the educational series concluded that stablecoins’ (i.e. USDT-TRON) emergence stands as the most profitable development in the cryptocurrency market over the years as it is liable to save the market volatility and allow needed liquidity that brings price stability.