- Stablecoins have seen massive acceptance
- Tether still dominates the market
2020 has disrupted many things from the way we used to know it to be. Our everyday life and everyday activities have been affected by the virus and the world economies are in shambles. But the crypto industry, especially stablecoins, have recorded a massive growth this year.
Many have linked the development of the sector to increased interest in DeFi among crypto market players while others think this is due to the large inflow of fiat currencies into the crypto market.
Decentralized finance has played a major role in the development and the level of interest being shown in stablecoins. Apart from using the coins to gain profits on other decentralized finances coins, it is also used to close the gap between crypto assets and other financial currencies
Presently, the transaction value of stablecoins have passed the $90 billion threshold for the first time in its history with Tether holding a major share of the market while coins like DAI and USDC have also recorded a massive growth.
Top performing stablecoins
The idea of stablecoin started in 2012 when the Mastercoin was proposed to mitigate against price volatility. Ever since then, the coin has been tied to the USD as it has been seen as a stable asset.
In the market today, coins like Tether, USD coin, Binance, have been making waves. Two of them are discussed below:
Tether currently holds the highest stake in the stablecoin market. It was designed in a way that would enable its users to store their profits against a crypto asset that is pegged against the dollar.
It presently has a market capitalisation of over $15 billion and its trading volume passes the $40 million daily.
Circle made the coin public in 2018. According to Circle, the coin is regularly audited and the results of such auditing process are released to the general public monthly.
Like Tether, the coin has also experienced an increase in the level of its acceptance as it currently has over $1.8 billion stablecoins in circulation.