A friend once described the blockchain as a step to having high blood pressure. Funny as this sounds, in some ways he wasn't necessarily wrong. Price volatility that comes with the chain is one ride that can take its toll.

I mean seeing your net worth go from hero to zero in a couple of days (sometimes even hours) would definitely put any investor in a frenzy. It is one thing to have a small stake, or as the saying goes something one can afford to lose; However it starts to get serious when the majority of one's assets is crypto based.

As a stakeholder, the more skin one has in the game, the less risk one is willing to accommodate. It isn't unnatural for investors to begin looking towards stability the more their asset base grows. I'll get back to this in a moment.

Volatility though is still one of the highlights of the space. Some people would rather have it this way for now, as there is so much profit being made from price swings. I can imagine if this wasn't the case the blockchain would not have attracted people as quickly as it did, or created as many millionaires today as it has.

It is still what is in play for now and perhaps what people want. However, the future has shown a need for more stability on the chain as it gains more relevance. The days of wild swings appear numbered and should rightly be for a few reasons.

In order to gain mainstream credibility, there has to be stability in the long term. Luckily developers and stakeholders alike have realized this and are making moves in that direction. A lot of people by themselves are working out ways to stabilize their holdings by having a more diversified portfolio and investing a majority in stable coins.

From a developer perspective, we have stable coins and AMMs to potentially hedge against wild swings as currencies find their true values. Stable coins are becoming a lot more popular with the introduction of AMMs as stakeholders look to minimize their risk and maximize their reward.

Here on Hive we have been blessed (or should I say worked had and now have) with options. First of, Hive has become relatively stable over the past couple of months and has been relatively predictable compared to other currencies.

But even more important, our own stable coin, HBD has been relatively stable too which is a huge improvement from the days when we were way off the peg. More people as a consequence are not motivated to put money in HBD and we have seen the positive effects of that. It is also worth noting that saving HBD attracts a 12% interest which is way more than what most banks give.

Leofinance has perhaps the most innovative ways of stabilizing ones assets while growing them simultaneously. We have cub defi and our liquidity pools which have been giving stakeholders decent returns on their capital.

Conclusion

It is a given that stability is needed on the chain, but with the developments on ground I'll say we are not far off. Hive can lead the way in this regard, and for those who know it will continue to show what's possible on this space.