According to asset manager VanEck, stablecoins stand out as a flourishing sector even as broader market crypto trends decline and leading blockchain projects slow down.

The asset manager VanEck explored these differences in its latest report released on April 3. As market volatility intensifies, developers slow down their work.

Tragic economic situations and possible U.S.-initiated trade conflicts are mostly to blame. Stablecoins, however, experience steady growth, making them stand out from other Web3 sectors that remain sluggish.

Stablecoins Offer Market Stability

According to Matthew Sigel, the head of research at VanEck, stablecoins serve as a vital indicator of Web3 overall health. The current strain of global economic barriers pushes investors into crypto market zones they see as safe ground, the expert commented.

Stablecoin market value rose by $10 billion throughout March 2019. Major financial institutions and companies, including VanEck, plan to provide stablecoin products to customers.

More investors are putting money into stablecoins, although these investments yield only 3% to 5%, similar to low Treasury Bills. People poured $1.27 billion more into tokenized Treasury Bills during March. This created new interest in the investment product, which now reaches $5 billion in total issuance.

Stablecoins in Bull Phase, Solana Loses Ground: VanEck

The trading platforms and smart contract systems experience lower performance numbers. The VanEck report uncovered that business revenues and trading volumes on main platforms declined by 36% and 40% last month.

Solana suffered big drops last month with its decentralized exchange volume falling 53% and daily transaction fees decreasing by 66%.

Solana Slumps, Ethereum L2s Dip

Solana lost the DEX volume leader position to Ethereum Layer-2 networks that it briefly held in February. Analysts explain that Solana”s revenue decline results primarily from reduced memecoin trading, which normally made up most of the network”s activities.

Libra’s unexpected failure after its release stands as the biggest challenge for the memecoin segment to regain its ground.

Cricket picks for Ethereum’s Layer-2 networks declined by 18% from their February peak. Ethereum’s secondary source of revenue through Layer-2 systems hit new year record lows during late March.

Stablecoins in Bull Phase, Solana Loses Ground: VanEck

The available data shows the crypto industry is making significant business changes right now. Popular interest in digital currencies moves away from risk-driven investments while decentralized finance declines which leads investors and big companies toward seeing stablecoins as safe and practical solutions.

According to Sigel, these coins offer a dependable cryptocurrency option instead of other standard assets because economic challenges and investor trust issues exist.

The world today favors digital money instead of traditional assets since markets stay unpredictable.