- The stablecoin market capitalization has surpassed $150 billion USD and has a trading volume of more than $81 billion USD.
- Just one month after 2022, more than $500 billion has been liquidated with stablecoins.
Within the crypto ecosystem there are assets of almost zero volatility which have become highly valued over time, especially in times of change such as those currently being experienced. These are stablecoins, or stable currencies, which have broken the barrier of $150 billion dollars, which means a new historical mark.
Currently the market capitalization of stablecoins is over $176 billion USD and has a trading volume of more than $81 billion USD.
The value of stablecoins
Being backed 1:1 with other assets such as the dollar, the stable coins take away the giddyness that BTC haswhere $100 dollars can be worth more, or less in just 5 minutes. That’s why with stablecoins what we send or receive will be the same as what we had in mind so it works very well as a means of payment or collection.
Researchers Kyle Waters and Nate Maddrey of Coin Metrics gave details about the present of this type of assets.
“Just one month after 2022, more than $500 billion has been liquidated with stablecoins. In 2021, total stablecoin transfer volume did not exceed $500 billion until mid-February, and in 2020, stablecoins took until October before surpassing $500 billion in total value deals. Going further back in time, the total value settled in stablecoins in 2022 is already double that of the entire year of 2019”, they describe making clear the growth of the sector.
Why are there so many stablecoins in circulation? One of the reasons is because of the ease of use and also because of a notable increase in demand for cryptocurrencies. Bitcoin has made a leap in 2021 and with it the rest of the altcoins. Another reason can be explained in the interest rate that the exchanges deliver, being much higher than the bank ones.
leading stablecoins
Within the top 100 cryptocurrencies there are six stablecoins: Tether, USD Coin, Binance USD, TerraUSD, Dai, TrueUSD and Pax Dollar. The first three are the great dominators of the market and together they represent more than 90% of the total supply.
Beyond all the doubts that exist about the lack of assets that support the stablecoin, Tether (USDT) continues to lead comfortably as it dominates almost 50% of the market. It is even third in the cryptocurrency market capitalization with almost $78 billion. Above only Bitcoin and Ethereum are located.
USDC, fifth overall and backed by Circle and Coinbase, has more than $51 billion in currency, while BUSD, owned by the world’s most famous exchange, has nearly $17 billion.
The report reveals USDC’s power on the Ethereum network is $44 billion, making it the largest stablecoin on the said blockchain. Meanwhile, USDT has a roughly 50% stake in the networks on which the token is issued. It currently runs on Bitcoin, Ethereum, EOS, TRON, and the Liquidity Network.
Meanwhile, DAI, which in addition to being a stable currency is decentralized, has a strong presence in Ethereum’s layer 2 networks, such as Polygon, for example.
Huobi’s BUSD and HUSD are the leading stablecoins in their industry – that of exchanges. Likewise, the differences between one and the other are still huge: BUSD has about $17 billion against the $386 million of the Chinese platform.
Stablecoins form an important leg within the crypto ecosystem and their growth means another bullish sign to see a bullrun in 2022.
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