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USDT takes the lead: Stablecoin dominance in Vietnam’s crypto scene

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Stablecoins have become an integral part of the cryptocurrency market, offering a distinct advantage of stability in an otherwise volatile ecosystem.

Examining the performance of Vietnam’s crypto market in H1 2023, Kyros Ventures’ report highlights the continued resilience of stablecoins. 

Despite the fluctuations, stablecoins maintain a firm position in Vietnam’s investment landscape. 

In a recent survey conducted by the organization, evolving trends in stablecoin usage, investment strategies, and the influencing factors behind the decisions of Vietnamese crypto enthusiasts were unveiled.

Stablecoins are a type of cryptocurrency designed to have a stable value, usually pegged to a traditional currency like the US Dollar or a commodity like gold. 

They aim to minimize the price volatility often associated with other cryptocurrencies like Bitcoin. 

This stability makes stablecoins useful for various purposes, including transferring value, trading, and as a store of value in the crypto space.

Kyros said that USDT (Tether) stands firm as the most favored stablecoin, retaining its position as the go-to choice for Vietnamese investors. 

The survey indicated a steady reliance on USDT for various financial activities within the crypto ecosystem. 

Apart from USDT, USDC (by Circle and Coinbase) and DAI (Maker Protocol and the MakerDAO) have experienced noteworthy growth rates as well signifying acceptance within the Vietnamese market.

New stablecoin players – TUSD and CUSD

In addition, it was revealed that two new players have emerged on the stablecoin scene. 

TUSD (TrueUSD) and Coin98 Dollar (CUSD) have been introduced, replacing UST (of Terra blockchain) and MIM. 

This shift testifies to the opportunity Vietnamese see to diversify into assets they deem safer.

Furthermore, the report revealed that 75.8% of respondents hold more than two stablecoins in their portfolios. 

This strategy helps reduce risks by providing investors with a safety net against market fluctuations.

While there is optimism for Bitcoin (BTC) prices to increase, many respondents indicated they held 25% to over 50% of their stablecoin assets. 

A noteworthy finding from the report is that newcomers to the Vietnamese crypto sphere appear more cautious, as a considerable portion abstains from holding stablecoins.

Concerning the storage of these digital assets, centralized exchanges (CEX) have emerged as the favored choice for the majority of Vietnamese investors. 

The survey results highlight the trust placed in CEX platforms, attributed to the security and convenience they offer.

Read also; Ethereum surpasses BNB Chain in Vietnam’s NFT space in H1 2023 

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