As CoinGecko reports, stablecoins market capitalization stood at $20,727,163,727. The success of the stablecoin industry is an indication of the growing crypto market in relation to the fiat currencies.
Stablecoins global market is another booming crypto industry beyond the DeFi ecosystem that has led the recent crypto volatility. According to figures provided by CoinGecko, stablecoins market capitalization stood at $20,727,163,727 at the time of writing with Tether (USDT) being the leader of the list. In addition, the total daily trading volume stood at $26,874,910,806. Notably, stablecoins are worth more than 6% of the aggregate $328 billion crypto market capitalization.
Media outlet, Bitcoin.com, noted that stablecoins’ supply has doubled in the past three months. This can largely be attributed to the growing interest in stable cryptocurrencies amid increased volatility in most digital assets. Moreover, the overall global crypto adoption has risen during the pandemic as people move away from fiat dependency to digital transactions.
Top Stablecoins with Tether Leading
According to CoinGecko metrics, Tether (USDT) was leading the stablecoin list with a market capitalization of $15,605,510,007. Notably, it had been listed by 311 crypto exchanges at the time of publication. In the past 30 days, Tether’s market cap had increased by 12.1%, whereby its daily trading volume stood at $25,977,049,711 at the time of writing. Not only was USDT doing well in the stablecoin industry but also in the overall cryptocurrency market, whereby it had been ranked position three by market capitalization according to figures provided by CoinMarketCap.
Second in the list of stablecoins according to market capitalization at the time of reporting was USDC. It had a market capitalization of $2,642,400,820, and had been listed by roughly 153 exchanges. Notably, its market capitalization had increased by approximately 59.9% in the past 30 days. Its daily trading volume stood at $357,161,699 according to CoinGecko.
To close the top three was Dai (DAI) with a market capitalization of approximately $870,584,557, and a daily trading volume of $70,759,626. Overall, DAI had been ranked at position 27 in terms of market capitalization. Other notable stablecoin projects include BUSD by Binance, whereby it has also developed BGBP pegged to the British pound.
On the Flipside
The success of the stablecoin industry is an indication of the growing crypto market in relation to the fiat currencies. It is expected that most governments will introduce digital currencies controlled by respective central banks, hence making the whole industry digital. As a result, stablecoins will receive a boost as they are less volatile in relation to other digital assets.
Notably, there are three types of stablecoins existing in the market today. One is the Fiat-collateralized stablecoins that maintain a fiat currency reserve, like the U.S. dollar, as collateral to issue a suitable number of crypto coins. The second is the crypto-collateralized stablecoins that are backed by other cryptocurrencies. And the last is the non-collateralized stablecoins that don’t use any reserve but include a working mechanism, like that of a central bank, to retain a stable price.
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