Bitcoin Surpasses All-Time-High $1 Trillion Market Cap

Last year, the PAYMYNT team predicted Bitcoin would hit $50,000 by the end of 2020. This week, Bitcoin hit $55,000 at the start of 2021. While we might be (a tad) biased but we think our estimations are just about on the money.

Bitcoin Surpasses All-Time-High $1 Trillion Market Cap

Like any crypto enthusiast, our team took a moment to celebrate the big $50K this week. Celebrations were then quickly followed by scrolling Twitter for the latest #cryptotwitter memes.  



While scrolling through our meme-filled feeds, we couldn’t help but notice .....

The amount of U.S. stablecoin activity happening on the @whale_alert's Twitter!

Check this out:

This got us wondering ...

Why, during a “bull run” for a decentralized currency, are U.S.-backed stablecoins buzzing with activity?

Fortunately, this isn’t the first time a cryptocurrency expert scratched his (or her!) head over this question.

Let’s take a look at a research project, The Influence of Stablecoin Issuances on Cryptocurrency Markets, conducted by Lennart Ante and Blockchain Research Lab for some answers.

First, let's look at Investopedia for some working definitions:

Two Sides of Different Coins


Stablecoins are cryptocurrencies pegged to stable commodities like gold. 

Decentralized Currency

Decentralized currencies are peer-to-peer bankless currencies. 

Using the above definitions, one can clearly see, stablecoins and decentralized currencies are two completely different coins with two completely different surfaces.

This brings us back to our original question:

In our next post, The Need for Stablecoins in a Decentralized Market, we unpack the stablecoin issuance study from the Blockchain Research Lab for some answers. Stay tuned!

*Any references to past performance, regarding financial markets or otherwise, do not indicate or guarantee future results. Paymynt Financial is not engaged in rendering any tax, legal, or accounting advice. Please consult with a qualified professional for this type of advice.