The founder of the Avalanche network, Emin Sirer, claims that the “reasonable” value of stablecoins will give them an edge over other cryptocurrencies. He believes that we will not complete the formation of the crypto market until stablecoin becomes the number one coin, that is, the first sign of the massive success of cryptocurrencies will be the fact that any stablecoin will overtake Bitcoin and become the leading digital currency.
It's understandable cause apart from being able to stabilize price volatility, stablecoins are also supported by multiple sources of assets. It could be a traditional currency like the US dollar, commodity, precious metals, or algorithmic functions, or other cryptocurrencies.
However, the risk level for stablecoins is greatly influenced by its backing, so isn't that a "too much" claim?
https://markets.businessinsider.com/news/currencies/avalanche-avax-emin-guen-sirer-founder-bitcoin-stablecoin-tether-usdc-2021-10https://swapzone.io/blog/stablecoinsIf the market cap of a stablecoin is higher than the market cap of Bitcoin, then Bitcoin will be controlled by an authority. This worsens the situation of crypto which is known for its decentralized and transparent nature.
We know that currently stable coins whose number continues to grow makes us worry that stable coins will control the entire crypto market. Those who can develop stable coins freely play in the crypto market. And it will be an authoritarian crypto market.