Binance CEO believes that the dominance of stablecoins is beneficial for cryptocurrencies

In a recent tweet, Binance CEO Changpeng Zhao suggested that the dominance of rising stablecoins means that the abundance of fiat money will support further growth in the cryptocurrency market.

According to Zhao, cryptocurrency investors would not hold stablecoins if they wanted to exit the crypto market.

According to the data provided by CoinMarketCap, there are currently three stablecoins in the top 10: USDT Tether, USDC Circle, and Binance’s own USD. Their combined market capitalization is over $ 138 billion.

Earlier this year, the algorithmic stablecoin TerraUSD (UST) also briefly entered the top 10 before the controversial project crashed in May, triggering a huge sell-off in the cryptocurrency market.

Despite the fact that cryptocurrency prices have dropped significantly since their peak in early November last year, Zhao recently told CNBC that the industry is actually healthier now compared to the peak of the bull market.