Stablecoin has experienced rapid growth with an estimated $187 billion. This is close to the $200 billion threshold.
Stablecoins like Terra’s UST and Neutrino Protocol’s USDN are gaining popularity even as Tether remains the most widely used.
These two countries saw a 34% and 44% increase in their issuances in the month before. If this trend continues, the issuance could easily exceed $200 billion within the next few months.
Stablecoins have strong USD backing
Stablecoins can be compared to other digital currencies.
Some coins are tied to the US dollar, implying that each one is fully backed by a dollar’s worth of cash, Treasury securities, or other secure assets and may thus be redeemed at will.
These tokens are responsible for representing a tenth (or more) of digital assets including cryptocurrency.
Source: TradingView.com| Source: TradingView.com
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The Tether at $80 Billion
Tether, the largest stablecoin in market value and currently stands at more than $80 billion.
USDT holds 43.78% of the stablecoin market. It is also the third largest cryptocurrency in market value, after Ethereum and Bitcoin.
Tether is followed by USDC (or the USD coin), which has a market value of $52.5billion, making it a substantial part of total market.
Tether represents 28% of stablecoin economics and is the fifth largest cryptocurrency, after Binance Coin(BNB) which is ranked fourth.
Stablecoins Advancing
Investors have great expectations for Terra’s UST, one of the fastest-growing stablecoins, and the Luna and UST projects as well. Current market capitalization of $14.7Billion is up almost 30% from the previous month.
USDC frequently trades with Tether, accounting for 65% of Monday’s tether swaps. As the most traded pairs with USDC, Tether follows BUSD and USD.
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USDT, USDC and USDC experienced no notable increases over the month. However, UST, FRAX and USDN saw significant increase in their 30-day issuance rates.
Terra’s UST increased by nearly 30%, and the stablecoin now has a market capitalization of approximately $15 billion.
Greater Potential for Growth
Last month, FRAX, the first fractional-algorithmic stablecoin protocol, saw its 30-day issuance rate increase by 9.5%, and Neutrino Protocol’s USDN climbed by 44%.
Stablecoins facilitate faster trading
Stablecoins like USDN and UST are used primarily to trade other more volatile digital assets such as Bitcoin.
Businesses around the world work to create stablecoins, which households and businesses can use for transactions. These could improve the accessibility and speed of the payments system.
Featured image taken from Bitcoin News. Chart by TradingView.com