Each Bear Markets points to a problem that needs to be addressed, and this Bear cycle has put Stablecoins into the spotlight, and for a good reason!

Bear markets are a good thing because its cleaning up all that mess that was accumulated during the Bull cycle. With the standard cleaning of shitcoins, we also saw a big upcoming challenge with other projects and coins and in particular with Stablecoins.

The catastrophe of Terra Luna and its stablecoin triggered a wave in this market and it just has put additional pressure towards other stablecoins, in particular with USDT but also with some other large marketcap stablecoins in this space.

The crypto community will need to revisit the tokenomics of stablecoins as its heavily challenged during Bear Markets and economic inflation that is in place.

IMO the next period will be crucial and challenging for Stablecoins as it has lost some trust from retail investors, and ine thing is sure, we won’t see lucrative staking option from them either in the near future.

It is a good thing that this will become a focus as this is a perfect opportunity to develop and make some well needed changes.