CoinShares reports the rise of a promising stablecoin, set to rival established market leaders in the Bitcoin industry.

CoinShares analysts are predicting the emergence of a Bitcoin-based stablecoin in 2024 that could potentially compete with existing stablecoins in terms of transaction speed and cost efficiency. According to the firm’s latest outlook report, 2024 will be a crucial year for Bitcoin in the stablecoin market, with the introduction of a user-friendly and accessible Bitcoin project. The analysts believe that a successful Bitcoin stablecoin project could match or surpass the efficiency and cost-effectiveness of current alternatives, citing the stability and security of the Bitcoin infrastructure as a key advantage. However, they also acknowledge existing technical barriers and user preferences for lower transaction costs and higher speeds. Despite these challenges, the analysts remain optimistic about the integration of stablecoin spending into businesses and Bitcoin plugins, which could improve Bitcoin’s monetary properties and resistance to censorship. While firms like Stacks, RSK, and Liquid Network have already developed stablecoins on Bitcoin’s layer-2 network, there is potential for these stablecoins to migrate to Bitcoin’s base layer in the future. Additionally, bitSmiley Labs is reportedly preparing to release a stablecoin on the Bitcoin blockchain in the “bitRC20 format,” backed by excess collateral and softly pegged to the U.S. dollar.