The crypto research company Kaiko published a report in a recent time which says stablecoins have been fundamental to the crypto industry with centralized variants taking the lead. The report stresses the significant role these stablecoins play in the market.
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Crypto Transactions Witness Increased Dependence on Stablecoins
Kaiko’s report is exhibiting the growing reliance on stablecoins within the crypto market. Recent performance figures indicate that as of Thursday nearly 74% of crypto transactions processed by exchanges involve stablecoins . This statistic reflects the increasing importance of stablecoins in the industry.
While stablecoins show a certain kind of dynamism Kaiko raises concerns about the integrity of the crypto market especially in certain unknown stablecoins. The lack of transparency surrounding these stablecoins has become a cause of concern.
TrueUSD (TUSD) Under Scrutiny for Opacity and Rapid Growth
Kaiko specifically points out TrueUSD (TUSD) as a cause for concern. TUSD has experienced a significant bullish movement with transaction volumes rising from 1% to 19% in just three months.
The situation becomes more troubling as Techteryx which is the firm behind TUSD faces difficulties stemming from the loss of its banking partner Prime Trust. Furthermore doubts still linger about the effectiveness of the claimed reserves . Kaiko suggests that the lack of transparency the stakeholders maintain could be the root cause behind the growth in transaction volumes associated with TUSD.
Call for Transparency and Caution in the Crypto Market
Kaiko concludes its report by warning about the risks relatively unknown stablecoins pose like TUSD. The lack of information regarding their reserves or corporate structure raises concerns about their long-term stability and trustworthiness . The crypto data provider stresses the importance of transparency in the industry to maintain the integrity of stablecoins and ensure the continued growth and development of the crypto market.
Kaiko’s report sheds light on the dominance of stablecoins particularly centralized variants. While stablecoins play an essential role there are still concerns about the integrity and transparency of certain unknown stablecoins with TUSD being a primary example . The quick growth in transaction volumes associated with TUSD with the opacity maintained by stakeholders raises questions about the stability and credibility of these coins. Transparency and caution are crucial in maintaining investor confidence and promoting the sustainable growth of stablecoins within the crypto industry .
