The stablecoin economy has grown rapidly, with a recent total of $187 billion, which is quite close to the $200 billion mark. Stablecoins such as Terra’s UST and Neutrino Protocol’s USDN are gaining traction, despite the fact that Tether remains the most widely used.
In the prior month, they had a roughly 30% and a 44% increase in issuance, respectively. In other words, if the current trajectory continues, it will easily exceed $200 billion in the next few months. In comparison to other digital currencies, stablecoins are intended to be just that stable.
Some coins are linked to the US dollar, which means that they are fully backed by a dollar’s worth of cash, Treasury securities, or other secure assets and can thus be redeemed at any time.
These tokens constitute one-tenth of all digital assets, including cryptocurrency. Tether, the largest stablecoin by market cap, saw its supply increase by 2% in the previous month, reaching more than $80 billion.
USDT holds a 43.78 percent stake in the stablecoin market. Furthermore, it is the third-largest cryptocurrency in terms of market capitalization, trailing only Bitcoin and Ethereum. Tether is followed by USDC, or the USD coin, which has a market valuation of $52.5 billion, making it a considerable part of the whole market.
Tether is the fifth-largest cryptocurrency, accounting for 28 percent of the stablecoin economy and trailing only Binance Coin (BNB). Terra’s UST, one of the fastest-growing stablecoins, as well as the Luna and UST projects, have high aspirations from investors. The market capitalization is currently $14.7 billion, a 30 percent increase over the previous month.
USDC often trades with Tether, accounting for 65% of all tether swaps on Monday. Tether is the most popular trading pair using USDC, followed by BUSD, USD, EUR, and WETH. While USDT and USDC experienced no major increases in the last month, 30-day issuance rates for UST, FRAX, and USDN increased.
Terra’s UST surged by about 30%, and the stablecoin currently has a market valuation of around $15 billion.