The bitcoin (BTC) network now has its own stablecoin. It new Bitcoin Ordinals protocol allows for the largest blockchain network for various applications. For example, it is possible to stablecoins to launch on Bitcoin. The American crypto company Stably claims to have launched the first BRC-20 stablecoin pegged to the dollar on the network, called StablyUSD.
Stably is thrilled to announce that we have launched the world’s first US Dollar #stablecoin on the #Bitcoin network. Introducing #USDa groundbreaking #BRC20 token implemented through the Bitcoin #Ordinals Protocol 🎉#USD is backed and redeemable 1-to-1 for USD collateral… pic.twitter.com/cpsDul0uzr
— Stably (@Stably_Official) May 25, 2023
Stably’s coin is not actually a new stablecoin. It has been around since 2019, but is now also available on Bitcoin through the new BRC-20 standard. The coin reportedly currently has a market cap of $7 million and is already active on 11 different blockchains. While stablecoins are not new to the crypto industry, they are new to the Bitcoin network. Other popular networks such as Ethereum (ETH) have grown rapidly due to the stablecoin protocols on the network, which continue smart contracts technology made possible.
Consequences Bitcoin price?
Stablecoins are popular in crypto trading and are reaching high volumes as a result. It is therefore not surprising that users are excited about the launch of StablyUSD on the Bitcoin network.
Using a stable valued coin, which in this case maintains a $1 valuation, promotes trading on the network and therefore usage. Investors hope that this network effect will have a positive effect on the price of bitcoin.
The most popular stablecoins on the market run huge volumes and have market caps comparable to the very largest cryptocurrencies. An example is Tether USD (USDT) which has a daily trading volume of $17 billion.
Increase in transaction costs
The popularity of the Ordinals protocol can also be seen in the network costs Where miners benefit greatly. For example, more than $ 38 million in transaction costs have already been paid as a result of the Ordinals protocol. However, that also caused some congestion in the network. With the arrival of StablyUSD, costs may increase even further.