As the crypto market saw a sharp drop in prices yesterday, dollar-pegged stablecoins saw significant demand. Currently, the total market valuation of all stablecoins is around $ 96 billion.

The rise of fiat-linked stablecoins

Large crypto assets like Bitcoin (BTC) and Ethereum (ETH) have experienced massive volatility that has fueled demand for stablecoins in recent years. The stablecoin market has grown significantly since July 2017, but skyrocketed after April 2020. One of the main use cases of stablecoins is that people can hedge their assets when cryptocurrency prices become extremely volatile.

Top 10 stablecoins by market capitalization as of May 13, 2021

Since the recent market downturn, the demand for stablecoins has increased dramatically. As most people know, Tether (USDT) is by far the largest stablecoin and is currently valued at $ 58 billion. Tether also captures the largest trading volume in terms of total trading volume in the entire crypto economy.

In addition to Tether’s massive market capitalization, the second largest stablecoin market valuation is held by USD Coins (USDC). The USDC stablecoin has a market capitalization of $ 15 billion and recorded a global trading volume of $ 5.4 billion yesterday.

Binance’s BUSD stablecoin and other crypto-based fiat tokens are gaining traction

The stablecoin issued by Binance is called BUSD, has a lower market capitalization than USDC and is the third largest stablecoin by overall valuation, despite the fact that BUSD USDC is around 14.3 billion in global trading volume.

$ 14.3 billion in global trade is pretty big, but Tether hit $ 265 billion in 24 hours, according to Cointelegraph’s reported trading volume. Münzenko. Statistics from Messari.io show similar numbers for Tether trading volume, but “real volume” data from Messari Research shows that only USDT 78 billion was traded on Thursday (May 13th).

Other lesser-known stablecoins have seen increased trading volume and market capitalization as well. Stablecoins like dai (DAI), Terrausd (UST), USD Liquidity (LUSD) and Paxos Standard (PAX) have all seen growth in market capitalization and trading volume over the past year.

With the market capitalization of all stablecoins (48 stablecoins) close to the $ 100 billion region and the price of digital currencies being so volatile, crypto-based fiat tokens will continue to be in demand.

Mr. Teacher

According to News.Bitcoin

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