Stablecoins are digital currencies whose value is intended to be tied to a benchmark asset. The reference asset could be fiat money, a cryptocurrency, or a commodity that is traded on an exchange (such as industrial or precious metals)., and can also aid cryptocurrency investors in avoiding market volatility, but they also have many other practical applications. Both the quantity and the number of stablecoins available have skyrocketed in recent years. Here are the top 4 Stablecoins by MarketCap:
Tether Stablecoin: USDT
Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner. Tether works to disrupt the conventional financial system via a more modern approach to money. One of the most often used methods for cryptocurrency traders to enter and exit the market is Tether.
There are several sources of Tether, and fresh Tether is frequently printed (which can be controversial at times, as Tether has never released an official public audit). Tether is popular because it is convenient, but the business is the subject of multiple lawsuits over alleged market manipulation.
Coinbase Stablecoin: USDC
USDC, a stablecoin from Coinbase, The Centre Consortium’s stablecoin, which has a $1 price, was introduced by cryptocurrency exchange Coinbase and payments provider Circle. The initial implementation is USD Coin (USDC), available as an Ethereum ERC-20, Algorand ASA, Avalanche ERC-20, Flow FT…
Binance Stablecoin: BUSD
In 2021, the BUSD ecosystem has expanded rapidly. The market capitalization of the stablecoin increased from over US$1 billion at the beginning of 2021 to over US$14.6 billion at the end of 2021. This places it behind Tether and USDC as the third-largest stablecoin by market capitalization. This increase in usage is mostly attributable to the support for BUSD by wallets, platforms, services, DEXes, and CEXes.
The Maker Protocol and the MakerDAO decentralized autonomous organization oversee the issue and development of DAI, an Ethereum-based stablecoin (stable-price cryptocurrency).
When fresh DAI is issued, a variety of different cryptocurrencies are deposited into smart-contract vaults to serve as collateral, and the price of DAI is soft-pegged to the US dollar. The DAI Savings Rate, which enables users to earn savings by holding DAI tokens, is not supported by Single-Collateral DAI (SAI), an earlier form of the token that could only be collateralized by a single cryptocurrency.