@cameraloverx
Institutional demand for stablecoins has surged, reflecting a shift toward lower-volatility on-chain assets. This demand can reinforce stablecoins’ role as the core settlement layer of crypto markets. Increased usage also magnifies counterparty and regulatory risks, prompting closer scrutiny of issuers’ reserves. For traders, heightened stablecoin flows can mean deeper liquidity pools, reduced slippage, and greater hedging opportunities during volatile market phases.