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The recent sell-offs across the cryptocurrency market have led to around $1 trillion being liquidated from the market since November. The crypto market cap currently sits at slightly below $2 trillion.
Despite the recession, the institutional interest in crypto assets is still high. In a recent interview with CNBC, the co-founder and CEO of Paxos, Charles Cascarilla, noted that the recent price action does not necessarily mean that the fundamentals of cryptocurrencies had changed.
Crypto fundamentals are still intact
Cascarilla noted that the fundamentals of cryptocurrencies had remained strong. The crypto market is highly risky because of its volatile nature, and according to the Paxos executive, this volatility is what was being experienced during the recent dips.
The executive noted that the adoption of cryptocurrencies was still high globally. He mentioned some leading institutions such as Mercado Pago that have integrated crypto payments.
The growing adoption of cryptocurrencies meant that the fundamentals of these assets had not shifted. However, he noted that the adoption of native coins such as Bitcoin (BTC/USD) and Dogecoin (DOGE/USD) for payments was still low. The use of fiat for payment purposes was still high, with cryptocurrencies mainly being used for investment purposes.
The growing use of stablecoins
Cascarilla predicted that in 2022, there would be increased use of dollars and stablecoins. The Paxos dollar, a stablecoin developed by Paxos and pegged on the value of the US dollar, has seen growing adoption, with its notable move being in Brazil.
The value of stablecoins is more stable compared to the prices of other cryptocurrencies. This attribute could trigger more adoption of these coins for payment purposes. The chair of the US Federal Reserve, Jerome Powell, had earlier stated that stablecoins could work alongside a US CBDC.
The issue of stablecoins has been debated by various regulators in the US. Cascarilla noted that the crypto industry would welcome some “sensible legislation”, as this would create a level playing field. He noted that lack of regulation could stifle the growth of the sector. Thus, these regulations could benefit the entire crypto industry in the long term.
Paxos CEO says crypto adoption is growing despite recent volatility appeared first on .
