In the cryptocurrency industry, a stablecoin is a type of digital currency that can maintain a fixed value. This means that it has low or zero volatility. In the past year, the number of stablecoins has been expanding at an unprecedented rate.
The market capital of stablecoins, otherwise known as tokens that are pegged to a dollar and used for transactions or investments, grew considerably in the last 12 months according to data released by coincgecko.com on January 11th of this year.
As digital currencies and other crypto assets grew and attained their highest values over time, so too did stablecoins which also gained considerably during this period.
The coicngecko.com report shows that at the end of November, stablecoins accounted for 8.24 percent of the total crypto market valuation which surpassed over $3 trillion and had a trade volume 61% higher than 12,000 other crypto assets combined.
The data of the 12-month period revealed rapid and massive growth of some stablecoins:
From 2020-2011, Tether’s (USDT) market cap grew 22.31%. It went up to $24.4 billion by January 11, 2021 and is the second-largest stablecoin asset in terms of market valuation today after Dollar coin (USDC).
On the contrary, as of December 31st last year Dollar coin (USD) had a low value at $0.02 per USDS token but was valued at an astonishing 897% growth with a current market cap of $43.9 billion on January 10th this year – more than USDT’s 24 million dollars worth.
The BUSD, which is issued by the exchange giant Binance , has grown 1,300% from its market cap of $1 billion last year to $14 billion now.
The Terra’s UST stablecoin valued at $138 million on January 11th increased to a whopping 10.5 billions USD in just one month before it nosedived again this week to potentially clear up any confusion that it had reached an all-time high this time round.
Interestingly enough, the frax (FRAX) token – backed by gold- grew tremendously as well with its market value reaching almost 2$ after only being worth about 92 millions bucks last year.
In 2021, tokens pegged to fiat currencies, also jumped in market caps than leading cryptocurrencies:
Makerdao’s DAI token has grown 592.3% in terms of market cap, from $1.3 billion to currently $9 billion.
Magic Internet Money (MIM) is the 6th largest stablecoin and its market capitalization has increased from $5 million at launch in September 2021 to now worth over 4 1/2 Billion dollars!
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Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
