In the cryptocurrency world, stablecoins have become a lot more prominent in the past few years. Whereas Tether’s USDT asset continues to generate the most liquidity, a fair few competitors have emerged in the past 18 months. The Universal Protocol Alliance is now looking to add another stablecoin to the mix, which can earn users up to 8% interest to boot. It will also be a currency tied to the Euro instead of the US Dollar.
Most cryptocurrency enthusiasts and trader swill welcome this new stablecoin with open arms. Although stablecoins do not rise or decline in value – or they shouldn’t, at least – they can provide a hedge during times when Bitcoin turns rather bearish. Over the past 18 months, there has been an ongoing bearish trend affecting Bitcoin and all alternative markets. As such, traders have been looking for a viable hedge to avoid ongoing losses to their trading portfolio.