However, the remaining 70% are either still in development or have been shut-down entirely.
Researchers from Blockdata believe that one consequence of this can be that 2019–2020 might even see a record high of the newly launched ‘tablecoins going live, with 119 calculated to be launched within this year.
Researchers conjointly examined attainable factors might have led to the closure of failing stablecoins. Failed stablecoins, in line with the study, tend to be commodity-backed by assets like gold. Gold-backed stablecoin’, specifically, accounted for about two thirds of all failed stablecoins.
Looking closer at the failed, currency-backed stablecoins, the researchers found many factors that they deemed to be accountable, falling into the classes of volatility, physical storage complications, as well as scams.
Some other trends outlined within the study enclosed the prevalence of ‘Ethereum‘-based stablecoins, along with the asset-backed stablecoin’. While the report identifies around 15 totally different blockchains that stablecoin’ are implemented upon, Ethereum retains around a 50% share of all stablecoin’ by ‘blockchain‘ – ensuing most common being Bitshares and Stellar.
Asset-backed stablecoins conjointly comprise an overwhelming majority of all live stablecoin’, at around 95%. While this remains the foremost common means of stablecoin provision, algorithmic stabilization and other strategies can be employed to develop a ‘stablecoin‘.
Forbes believes that gold can offer a fixed value for the forthcoming digital currency given the valuable metal’s purported history of stability:
“For a number of reasons gold holds its intrinsic price higher than anything. It’s like a measuring rod. It no more restricts the money supply than the twelve inches in an exceedingly foot restricts the dimensions of a building you would possibly wish to construct. All it suggests is that the Libra will have what no other currency has today: a fixed price.”