Dollar-Pegged Stablecoin Valuations Plunge Amid Bitcoin’s Bull Run

The price of a dollar-pegged stablecoin, or cryptocurrency that maintains its dollar-pegged price, has fallen to a nearly two-year low amid rising bitcoin prices.

The dollar-pegged stablecoin is a way for businesses and investors to hedge against the volatility of digital currencies like bitcoin, which has grown by more than 1,000% since the start of 2019. These assets have grown rapidly in recent years as more companies seek to create a digital currency. Currencies are pegged to the US dollar as some investors consider them a safer bet than cryptocurrencies like bitcoin or bitcoin. 'Ethereum.

The price of the Gemini dollar - one of these stablecoins - fell about 5% on Wednesday after hitting $0.9775 per token at 11:30 am. a.m. EDT (3:30 p.m. UTC), according to data provider CoinMarketCap, which tracks prices on more than 50 exchanges worldwide. The drop follows an all-time high above $1 per token earlier this month, when Gemini launched its own exchange and enabled trading pairs between its own stablecoins and fiat currencies. other cryptocurrencies, including bitcoin and Ethereum Classic (ETC).