According to the team of analysts at banking giant Goldman Sachs, algorithmic stablecoins can only achieve long-term success if they become widely used in payment transactions.
Algorithmic stablecoins have been heavily on the agenda following the recent crisis in TerraUSD (UST).
Goldman Sachs’ research team published a report on Monday, taking the stablecoin issue to the fore. In the report, “Stablecoins are only used as a means of payment at a limited level today. If these become more widely used for real-life payment purposes, there can be solid ground for demand for these assets.” and the following statement was added:
“If there is a demand for these transactions (for these assets), the assumption can be made that algorithmic stablecoins will be able to survive in the long run.”
The Goldman Sachs team helps crypto investors to trade their money while trading in the market thanks to stablecoins. that it got rid of the traditional monetization effort and stablecoins are thus a market “eliminates the need” states.
According to the report of Goldman Sachs, stablecoins are trading in the foreign exchange market It has some weaknesses that investors will be familiar with. “It is not surprising that some of the vulnerabilities encountered in pegged currency regimes are also encountered in algorithmic stablecoins.” as an example of one of these weaknesses. “speculative attacks” is showing.
Analysts still proliferation of usage areas and growth in demand along with such stablecoins on solid ground He adds that it can continue to grow.