The stablecoin space is more active now than it has ever been–in June of this year, a Binance report entitled The Evolution of Stablecoins found that stablecoins are rapidly tapping into the dominance of Bitcoin and Ethereum pairs, and have grown to represent 60 percent of traded volume. In June of last year, stablecoins represented just 35 percent of market volume.
London Summit 2019 Launches the Latest Era in FX and Fintech – Join Now
As such, a growing number of companies are issuing stablecoins of all shapes and sizes, and for each and every purpose. CementDAO reported in April of this year that it had tracked at least 213 stablecoin projects that had been issued since 2014; 20 of them had been launched in the first quarter of 2019 alone.
But is there room in the market for all of these new coins? Recently, Finance Magnates spoke to Gustav Arentoft, a business development representative for MakerDAO’s European initiatives, on the state of the stablecoin space and the different business models that drive the stablecoin industry forward.
Arentoft will also be appearing at the upcoming Ethereal summit in Tel Aviv on September 15th.
The MakerDAO foundation, which as founded by Rune Christensen in Santa Cruz, California, in 2014, is a non-profit organization that is responsible for the issuance of two cryptocurrencies: Maker (MKR) and DAI. MKR is the Ethereum-based governance tokens that provide voting rights to the borrowing system that is used to generate Dai, which is a decentralized stablecoins that is collateralized and printed based on approved requests for loans.
“MakerDAO is a project where we have taken the initial framework for what blockchain and Bitcoin was set out to do–be a completely decentralized, global way of sending money [with] peer-to-peer transfer, [and act as a] store of value–and then we have added stability to it.”