Expect More Insolvency in Crypto Industry this Year – Circle CEO Says at WEC

The post Expect More Insolvency in Crypto Industry this Year – Circle CEO Says at WEC appeared first on Coinpedia Fintech News

Jeremy Allaire, the CEO of Circle, in an interview with CNBC’s Arjun Kharpal at the World Economic Forum in Davos, Switzerland said some crypto companies are struggling to raise capital thus more insolvency is looming in 2023.

According to Allaire, the ongoing crypto contagion and increased distress from government regulations are likely to push struggling crypto companies to insolvency mode. Moreover, the FTX and Alameda collapse are still fresh in investors’ minds.

Nonetheless, Allaire believes the core technology behind digital assets will continue to grow in 2023 and beyond. As such, Circle is keen to partner with global payment companies like Visa, Mastercard, and Stripe, among others to onboard more users worldwide.

Crypto companies, especially centralized exchanges, have recorded a sharp decline in daily traded volume in the past few months. Moreover, crypto traders have migrated en masse to decentralized exchanges (DEXes) and non-custodial crypto wallets.

“Transaction revenue was significantly impacted by stronger macroeconomic and crypto market headwinds, as well as the trading volume moving offshore. Meanwhile, we saw strong growth in our subscription and services revenue, driven by our participation in the USDC ecosystem and higher staking activity,” Coinbase noted in its 22Q3 earnings report.

Moving forward, Circle CEO expects real-world utility to drive the adoption of digital assets rather than mere speculation. Allaire expects the stablecoins industry to help onboard institutional investors like banks and large cross-border payments firms. 

Ranked fifth by market capitalization, Circle USDC has 43,487,107,790 units of digital dollars in circulation. The USDC stablecoins reported a 24-hour trading volume of about $2,948,148,089, according to our latest crypto price oracles.

Tether USDT is the top stablecoin with a market capitalization of approximately $66,500,257,773 and a 24-hour trading volume of about $40,568,062,122.