It is no secret to anyone that traditional cryptocurrencies, like Bitcoin (BTC), are extremely volatile. In response to this situation, the cryptoverse itself creates a stable currency, the stablecoin. And from CryptoTrend we bring you the 5 most powerful Stablecoins on the market.
What is a Stablecoin?
11 years ago BTC was only worth a few pennies, then it went on to be worth $ 20,000, then $ 3,000, and now $ 6,000. This is the sacred dance, not only of Bitcoin, but of all its altcoins.
This situation has caused many of the possible new hodlers to flee the ecosystem. Also, institutional investors and regulators don’t like the idea of crypto’s high risks as much.
Although the technology behind cryptocurrencies are great for many reasons. Volatility remains the main setback.
But it is not all bad news. The same cryptoverse when observing that this problem existed has responded with Stablecoins. They are stable cryptos that do not vary substantially in price. They are typically tied 1: 1 to the US dollar, but have recently been featured in other fiat currencies.
So Stablecoins have all, or almost all, honeys from crypto like Bitcoin. With the exception that they do not vary in price over time.
The 5 most powerful stablecoins on the market
1- Tether (USDT)
This is one of the first stablecoins to go on the market, becoming the first stablecoin. Like Bitcoin, for the reason that it came in the first place, it has earned the trust and respect of the cryptoverse, regardless of the controversies it has gotten into lately.
This stablecoin is a crypto market favorite, and it lives on the Ethereum Blockchain. Although many people do not know it, it is the one with the highest daily trading volume, with $ 44,754,547,144, beating Bitcoin, which has $ 37,793,163,097.
Although it sounds impressive, it makes us notice that Tether is the safe haven of crypto, that safe havens of the traditional.
It is currently number 1 within stablecoins, and number 4 within the entire crypto ecosystem by market cap, only behind Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP).
It is worth noting that its value at the beginning was anchored 1: 1 to the US dollar, but this is no longer the case today. A few years ago, the team behind this stablecoin revealed that the USDTs were not backed 1-to-1 with the USD, but with part in Bitcoin and in other debts with its subsidiaries.
It is undoubtedly the heavy weight of the cryptoverse and the top dog of the most powerful stablecoins on the market. But, beware of the multiple annual controversies in which you are involved.
2- Paxos (PAX)
Paxos Standard (PAX) is another stablecoin, which allows users to exchange US dollars for PAX. It particularly focuses on transactions that require speed on the Internet. Its main objective is to merge the stability of the dollar with all the honeys of Blockchain technology and crypto.
Paxos, the company behind PAX, has a letter from the New York State Department of Financial Services, allowing it to offer regulated services in the crypto space. So for issues of security problems we should not worry.
Paxos currently has a much lower volume of transactions than Tether (USDT), with some $ 1,148,369,816. While in the cryptoverse it occupies the position No. 30, with a market capitalization of $ 240,142,312.
3- USDC
USDC is a fully-backed US dollar stablecoin, unlike USDT. Crypto also lives on the Ethereum Blockchian and is the brainchild of CENTER, an open source project powered by contributions from Circle and Coinbase.
USDC Tokens are issued by regulated and licensed financial institutions that maintain their 1: 1 US dollar guarantee.
Currently, USDC closely follows Paxos, with a daily transaction volume of $ 955,810,570. Although it is the third of the 5 most powerful stablecoins on the market, it occupies the 15th position by market capitalization with $ 688,074,554.
4- TrueUSD (TUSD)
We are already at the end of our list. Unlike Tether (USDT), TrueUSD provides its users with regular certifications that their TUSD balances are guaranteed in US dollars. In addition to legal protection against misappropriation of the underlying USD.
TrueUSD is issued by the TrustToken platform. Which has partnered with other governments and their fiat currencies, also with registered banks that hold funds that back TrueUSD tokens.
One of the interesting features of this crypto is that the funds in fiat money are regularly verified in “scheduled certifications”, and are kept in third party accounts that serve as custodians. So TrustToken does not have direct access to the guarantees of its hodls.
Currently this Stablecoin is ranked 4th in the 5 most powerful stablecoins on the market, with a daily transaction volume of $ 506,523,261, almost 10 times less than Tether (USDT). While in the crypto market in general, it is located in position 37, with only $ 136,101,633.
5- Binance USD (BUSD)
The world’s largest crypto exchange Binance launched its own stablecoin last year, also fully guaranteed 1: 1 in US dollars and with the help of Paxos.
Binance in parallel launched its own Blockchain to entirely run its crypto BNB, its Stablecoin BUSD and its crypto exchange.
BUSD currently ranks 5th among the most powerful stablecoins on the market, with a daily trading volume of $ 71,833,655. And within the cryptoverse in general, it is located in position number 35 with $ 180,543,061 in market capitalization.
