After Silvergate: Stablecoin Use for Crypto Trading Set to Skyrocket

The crypto landscape is evolving rapidly. Since Silvergate Capital Corp.'s crypto payment network is ending, the research shows that traders will soon use stablecoins even more. Ailing Silvergate Capital’s decision to shutter its instant settlement service SEN, which was popular among large investors, will boost the role of stablecoins and their utility within the crypto ecosystem. Crypto traders are likely to lean more toward dollar-pegged stablecoins, after Silvergate Capital Corp, and its crypto-friendly lending affiliate, said last week it was at risk of collapse.

Why Stablecoins Will Flourish Post-Silvergate

The shutdown of Silvergate's SEN network leaves a void in instant crypto settlements. A new study by digital asset data provider Kaiko has found that Silvergate’s decision to shut down its instant payments network will likely boost stablecoin adoption among traders. Stablecoins address the need for digital tokens that maintain a consistent value relative to a reference asset such as fiat currency (for example, US dollar). This makes them a vital tool for traders seeking stability and efficiency.

Stablecoins: The Bridge to a More Accessible Crypto Future

Stablecoins play an essential role in bridging the gap between traditional finance and the world of decentralized finance (DeFi). A recent analysis report pointed out that the Silvergate saga could be a boon for stablecoins, for they could be used to facilitate faster and more reliable transactions. Stablecoins might also make it easier for the general public to use crypto-powered decentralized finance services and other blockchain-based applications. Stablecoin adoption is expected to increase as traders seek alternative solutions to Silvergate's now-defunct network, solidifying stablecoins as a cornerstone of the evolving crypto market.