Stablecoins didn’t have quite a good year so far. The dramatic collapse of Terra, a popular stablecoin, triggered a destructive crypto crash. Flagship currencies, Bitcoin and Ethereum, suffered great losses. Prominent crypto firms such as Celsius and Three Arrows Capitals, declared bankruptcy. Though now the crypto market seems to be reviving. At the time of writing, the top cryptocurrency was trading at $23,247.83.
In latest news, a credit-based stablecoin, Beanstalk, too has revived. Interestingly, on its one-year anniversary. The stablecoin also suffered a hack that drained its $182 million.
According to the project’s official website, the Beanstalk experiment is booming again. Though it can not be yet said with confidence about its performance, however, Beanstalk Farms is confident in the possibility for a permissionless fiat stablecoin.
To the uninitiated, stablecoins are pegged to an asset, fiat or crypto. There are algorithmic-based stablecoins that are backed by collateral. On the other hand, Beanstalk maintains the value of its native token, BEAN with an algorithm.
The statement further stated that Beanstalk acts as a catalyst for trustless money that makes decentralized finance easy for everyone by removing collateral requirements. The largest of attacks remains the $182 million exploit.
The Terra collapse has embedded a fear in the minds of investors regarding stablecoins. The investors are worried about the safety of their funds in various other stablecoins. Another popular stablecoin Tether experiences outflows in millions, as per the latest reports. However, recently it was also reported that Tether, which is now the world’s largest stablecoin, has increased its circulating supply after three months of experiencing decline as the crypto market recovers. The Tether transparency report reveals that there are currently 66.3 billion USDT in circulation. As a result, Tether contributes a whopping 43% in the stablecoin share market.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.