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Unlike the high volatility of Bitcoin, stablecoins are becoming more popular for their steady prices just like traditional currencies across the world. Recently, the market value of these cryptocurrencies has experienced a massive hit since the last year. Investors are instigated to consider investments in the plethora of stablecoins instead of Bitcoins to secure higher ROI in the nearby future. They do not need to worry about the highly volatile Bitcoin that can provide them with a major blow in the price. Thus, stablecoins replacing Bitcoin is a hot topic in the cryptocurrency market in the last few months. Let's explore some of the top stablecoins that are set to replace Bitcoin in the future.
Tether is known as the largest stablecoin by its market capitalization among hundreds of cryptocurrencies. Tether is designed to be pegged to a dollar. The current price of Tether remains at US$1, even when Bitcoin crashes or hits the US$50k range. The volatility and constant fluctuations of the cryptocurrency market do not affect the price of Tether. Investors consider investing and purchasing Tether to buy certain cryptocurrencies to receive a safety net during unprecedented times. Tether is one of the top stablecoins in the crypto market owing to the rise of US dollar collateral on some popular cryptocurrency exchanges.
Investors consider the USD Coin as another stablecoin replacing Bitcoin because they can always redeem one USD Coin for US$1, just like Tether. Each of these stablecoins is backed by one dollar or any equivalent asset with a fair stable value and is accountable with the US-regulated financial institutions. It is also known as an Ethereum token that can be transferred beyond barriers from businesses to people across the world.
Binance USD is one of the top stablecoins that can replace Bitcoin because it is pegged 1:1 to the US dollar. It is one of the best options to preserve wealth as well as stabilize the portfolio value through investing in stablecoins like Binance. It is approved by the New York State Department of Financial Services. Investors can convert stablecoins with zero transaction fees for some of the other stablecoins.
One of the emerging stablecoins to replace Bitcoin is Dai pegged to the US dollar with a 1:1 value ratio linked to US$1. It has an aim to reduce the highly volatile market with multiple decentralized finance features like seamless lending, borrowing, as well as trading. The decentralized governance community, MakerDAO, regulates the price of this top stablecoin. It is becoming popular for providing some transactional benefits to investors.
TerraUSD is known as the first-ever decentralized stablecoin that can replace Bitcoin for being scalable, driving stable revenue, and interchain to major blockchains. Investors can reap the benefits of this stablecoin to replace Bitcoin investment— infinite scalable monetary policy. It takes advantage of pre-existing technology and innovations for providing a user-friendly experience.
TrueUSD is also pegged 1:1 to the US dollar and known as the most liquid stablecoins that can replace Bitcoin in the future cryptocurrency market. It tends to offer a much lower transaction fee with TrustToken that consists of more cryptocurrencies like TrueGBP, TrueAUD, TrueHKD, and many more. The demand for this stablecoin is rising owing to its fully collateralized, transparency, and legally protected reliable stable ERC-20 token. TrueUSD was created to take over traders and exchanges, mainstream commerce, developing economies, long-term financial contracts, and other financial institutions.
Paxos Standard is one of the collateralized fiat currencies based on the Ethereum blockchain. This stablecoin is also pegged to a US dollar and is becoming popular for its speed, flexibility, immutability, decentralized accounting, and unlimited access to seamless transactions. It was created to address the high risk and volatility of prices of popular cryptocurrencies like Bitcoin. Paxos Standard acts as one of the best alternatives for blockchain digital assets and cryptocurrencies transaction in the cryptocurrency market.
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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.
