According to analysts at Goldman Sachs, for algorithmic stablcoins to have a future, they need to find widespread use for payments in the real economy.
“Hypothetically, algorithmic stablcoin could survive in the long run if there was a steady demand for it related to transactions,” the bank said.
According to Goldman Sachs are vulnerable enough because of speculation.
However, the bank believes that algorithmic steblecoins have a place if there is sufficient demand for them and appropriate uses.
“The positive network effects of greater non-speculative use of these protocols may contribute to a more stable demand base over time,” the analysts concluded.