However, their strong fluctuations in value prevent them from being used as a payment instrument. Many private crypto tokens had a massive amount wiped off their value in recent months. While, at their peak in November 2021, their global market cap stood at almost € trillion, it was down to just one-third of this total latterly.
[6] This is a powerful demonstration of the fact that crypto tokens are primarily a speculative investment instrument and not a means of payment. Could stablecoins, which are also based on distributed ledger technology, be an alternative? Their issuers promise to keep their value stable by pegging them to an official currency.