Stablecoins deserve better, and they’re finally getting it

💡 DMK Insight

Stablecoin settlement times are a critical factor for traders, especially in a fragmented market. As the article points out, the efficiency of stablecoin transactions hinges on the underlying blockchain technology. If these payment chains aren’t consistently operational, traders could face delays that disrupt trading strategies, particularly in high-frequency or day trading scenarios. This fragmentation mirrors issues seen in traditional finance (TradFi) and highlights the importance of liquidity and speed in crypto markets. Traders should keep an eye on which stablecoins are gaining traction on more efficient blockchains versus those stuck on slower networks. For instance, if a stablecoin on a high-performance blockchain starts to dominate, it could lead to a shift in trading volumes and liquidity preferences. Watch for any announcements regarding upgrades or changes in settlement protocols, as these could significantly impact trading dynamics in the short term.