Technology has impacted almost all of our daily activities, including finances. Every day, more and more people are opting for digital modes of payment. This is one of the major factors contributing to the growth of investments in cryptocurrencies. New investors mostly prefer stablecoins, as they minimize the market volatility. These crypto-assets are mostly pegged to the value of fiat money. Over the years, stablecoins have increasingly brewed up a storm in the crypto space. Recently, more and more assets have been used for backing up stablecoins. So, in this article, we have gathered a list of 10 stablecoins that have been gaining traction and should be watched out for 2022.
Market cap: US$73.829 billion
Tether is one of the first stablecoins that has gained a lot of popularity because of its US$1 value. Due to the cryptos' dramatic volatile behavior, several lose investors lose interest in the market. Stablecoins like tether minimize this volatility. Tether was created to remain at US$1, with US1 in reserves for each tether released. The coin describes itself as a platform designed to facilitate the use of fiat currencies virtually.
Market cap: US$13.051 billion
Binance launched its stablecoin in 2019, which relatively makes it a newcomer in the crypto space. BUSD was offered as an attractive bid to its new users looking to get into the crypto world safely and securely. Binance USD has pegged itself to the US dollar which enhances its stability. BUSD is one of the biggest cryptocurrency exchanges which will continue to rise in 2022.
Market cap: US$1.209 billion
True USD was launched in 2018 and is a 100% dollar-backed stablecoin in the market. It is transparent, reliable, and many consider it perfect to use as a hedge against market volatility. The token features a ratio of 1:1 against the dollar. Furthermore, its creators do not participate in the transfer and have no access to it.
Market cap: US$34.423 billion
USD coin anchors its value to the dollar and operates on various blockchains like the algorand, ethereum, and Solana, to name a few. It works on CENTRE technology, which appeared as a joint effort by Coinbase and Circle. Additionally, it is a crypto-backed stablecoin. Its fund reserves remain in the FDIC-insured US banks.
Market cap: US$9.45 million
Pax dollar, previously known as Paxos Standard was a dollar-backed stablecoin operating on the ethereum blockchain. Experts believe that it is one of the best fiat collateralized tokens in terms of eliminating cross-border transaction fees. Wall Street regulators widely accept this token and consider it a reliable crypto asset. It also aids in improving the traditional financial industry.
Market cap: US$36 million
The underlying Terra protocol that runs TerraKRW is a tried-and-true network in the stablecoin space. Terra uses its LUNA cryptocurrency token to keep its stablecoins balanced using an interesting system. Out of all the different currencies, Terra uses the Korean Won. This is partly because the Terra company was founded in South Korea, thereby knowing how to cater to its local audience.
Market cap: US$3.41 million
Digix gold is a stablecoin backed by physical gold. Individual tokens are responsible for creating a DGX token to preserve the identity of the gold bullion attached to it. It is managed through a smart contract involved in the creation of the token. Any DGX owner can cash out their tokens in the form of physical gold bars according to the specified value.
Market cap: US$6.481 billion
Dai is an ethereum-based stablecoin. Its price is pegged to the US dollar and is collateralized by a mix of other cryptocurrencies. Its issuance and development are managed by the maker protocol and the makerDAO decentralized autonomous organization.
Market cap: US$5 million
It is another stablecoin backed by gold and runs on the ethereum blockchain. It enables the investors to buy and keep the asset using cryptocurrency. Since its creation, several investors and programmers who believe in promoting economic freedom have gotten involved in its development.
Market cap: US$4.63 million
Reserve right is a dual-token stablecoin platform. The coin aims to create a censorship-resistant stablecoin and a decentralized fiat gateway network. The crypto is backed by a basket of assets managed by smart contracts.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.