Revolutionizing Digital Currency: The Rise of Stablecoins and New Crypto Innovations

Updated: 01 November 2023

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

Pantera Capital’s Jeff Lewis, a prominent figure in the cryptocurrency hedge fund industry, recently asserted that despite the incredible success of Bitcoin (BTC) and Ethereum (ETH), these cryptocurrencies have not lived up to some initial expectations. In a letter penned on a recent Tuesday, Lewis highlighted that fifteen years post the inception of Bitcoin’s whitepaper, Bitcoin’s issues with speed and scalability continue to hamper its utility as a viable money substitute. However, Ethereum has successfully established itself as a decentralized programmable platform, leading to an ecosystem rich with NFTs, Web3 applications, and DeFi, all powered by ether (ETH).

Despite Ethereum’s achievements, Lewis points out its volatility, almost matching that of Bitcoin, which undermines its potential as a stable currency. In contrast, stablecoins are emerging as a promising solution. According to the Pantera executive, stablecoins are uniquely positioned to facilitate peer-to-peer value transfers, providing protection against unstable currencies and reducing reliance on service providers.

Drawing a parallel with PayPal, Lewis notes how the payments giant facilitates inexpensive global transfers of digital ledger entries equivalent to one dollar. PayPal’s foray into the stablecoin arena with PYUSD in August underscores this trend. He further discusses the potential of a new version of PayPal, coined “PayPal 2.0,” which could offer trustless, transparent, and yield-bearing features, although such plans by PayPal remain speculative.

Lewis also forecasts the advent of a stablecoin offering money market yields as regulatory clarity and market competition intensify. He observes the burgeoning stablecoin sector, where coins are increasingly backed by money-market investments and the tokenization of the money-market itself. This evolution is evidenced by actions of significant financial institutions like Franklin Templeton, which launched a blockchain-based money market fund in 2021, and JPMorgan and Citi, which are developing blockchain applications and tokenized solutions.

Coinbase institutional research heads David Duong and analyst David Han echo these sentiments, suggesting that stablecoin liquidity and tokenization could significantly impact the broader crypto economy in the next market cycle. Lewis of Pantera further accentuates the appeal of a potential “PayPal 2.0,” envisaging it as a safe, yield-bearing platform, paving the way for widespread token adoption and a surge in the crypto ecosystem’s growth.

Meme Kombat Presale

In a related development, the cryptocurrency market is observing intriguing progress in the realm of altcoins, especially with the advent of Meme Kombat. This innovative project, blending nostalgia-inducing gaming and GambleFi on a decentralized Web3 platform, has captured significant attention, drawing $1 million in funding. Meme Kombat stands out with its engaging combat arena, where players bet on the outcomes of AI-driven battles featuring characters representing diverse crypto communities. This uniqueness, transparency, and unpredictability keep the gaming experience fresh and exciting.

Meme Kombat‘s integration of memes, gaming, and blockchain technology positions it as a unique contender in the expanding GambleFi sector, making it a noteworthy consideration for investors seeking to diversify their portfolios with novel crypto offerings.

You can participate in the Meme Kombat presale here.