Inflation is driving the acceptance of cryptocurrencies in emerging economies

Residents of poorer countries prefer stablecoins.

Looking at consumer behavior in these countries shows that citizens of poorer countries prefer to invest in stable coins, such as USDT, rather than volatile digital assets, such as Bitcoin. Residents of wealthier countries, on the other hand, take greater risks as they prefer to invest in risky cryptocurrencies.

DeFi native stablecoins developed by MakerDao, Anchor Protocol and other companies may one day help individuals holding stablecoins hedge against growing inflation, CoinMarketCap said.