(MENAFN - Yolo Wire) The number of people invested in %Stablecoins is fast approaching 100 million.

The number of people around the world holding stablecoins has increased 15% so far in 2024 to reach 93.6 million, a record high, according to market data.

Stablecoins have emerged as one of the hottest areas of the cryptocurrency market.

Essentially, stablecoins are cryptocurrencies whose value is pegged to another asset, typically the U.S. Dollar of price of gold bullion.

Because of their peg to assets such as the U.S. dollar, stablecoins are viewed as a safer cryptocurrency whose price is not prone to volatility, making them an increasingly popular choice among investors.

Currently, there are 35 stablecoins in existence that have a combined market capitalization of $157 billion U.S.

%Tether (CRYPTO: $USDT) is by far the industry-leading stablecoin with a current market cap of $114.07 billion U.S. It accounts for more than 80% of all stablecoin held by investors.

A 2022 report by the U.S. Federal Reserve said that stablecoins can serve many purposes, including for cross-border payments, internal fund transfers, and liquidity management.

A recent report from ratings agency %S&PGlobal (NYSE: $SPGI) forecasts that U.S. banks will eventually adopt stablecoins.

In Congress, U.S. Senators Cynthia Lummis and Kirsten Gillibrand recently introduced legislation aimed at regulating stablecoins and promoting their greater use in the American financial system.

MENAFN24042024007606016353ID1108133635

COMTEX_451379628/2604/2024-04-25T00:03:48