Stablecoins are called that for a reason. Their value is always stable due to being tied to the rate of an asset. Almost anything can act as an underlying asset — fiat currencies, cryptocurrencies, tangible goods, and raw materials. But dollar stablecoins are the most common since the value of digital assets is usually estimated against the dollar.
Stablecoins allow you to enjoy the advantages of cryptocurrencies, such as fast and cheap transactions and flexibility for trading but avoid their main drawback — excessive volatility. Thus, people can swap their dollar savings for stablecoins without fear of depreciating.
Today we will consider the top 10 stablecoins by market cap. Let’s get started!
#1 Tether (USDT)
- Blockchain: Ethereum, Tron, BSC, and more than ten networks
- Market cap: $67,934,648,914
- Year of creation: 2015
In theory, Tether is a peer-to-peer blockchain system and an open-source cryptocurrency. At the same time, it is the safest stablecoin, whose value is pegged to the US dollar. Market fluctuations practically do not affect its rate, although a temporary rise in price by 21% up to $1.22 took place in 2017.
It is also important that USDT is the most popular stablecoin. Almost all cryptocurrency exchanges and wallets support it as an alternative to traditional currency deposit and withdrawal methods. For individuals, this also has a lot of advantages: easy transfer of coins between exchanges and wallets, increased opportunities for arbitrage, and cross-exchange.
If you’re wondering where to buy USDT, you should definitely think about buying it at Switchere. On our platform, you have an opportunity to buy USDT in the fastest and most convenient ways using any available payment method. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order.
#2 USD Coin (USDC)
- Blockchain: Ethereum, Solana
- Market cap: $50,131,372,761
- Year of creation: 2018
USDC is another stablecoin with fairly high transparency and liquidity. The company publishes monthly public audits to ensure investors that all digital coins are fully backed. USDC was issued by the Circle issuer in partnership with the Coinbase crypto exchange. USDC is the second most liquid stablecoin after USDT and is also traded on most major exchanges.
Circle is licensed and fully regulated by the NYDFS (New York State Department of Financial Services) to do business in the USA. NYDFS is the toughest financial regulator in the United States. The organization has undergone several funding rounds and is extremely well backed by venture capital. With all the advantages, it must be taken into account that USD Coin is a centralized stablecoin that can be frozen or confiscated if the regulator considers that a coin’s owner acted illegally.
#3 Binance USD (BUSD)
- Blockchain: Ethereum, BSC, Harmony
- Market cap: $20,509,479,096
- Year of creation: 2019
Binance USD is another US-regulated stablecoin. Fully collateralized in USD, BUSD provides a fast way to finance transactions and is also used as a means of exchange or as a payment method in the global crypto space. The coin is approved and regulated by the New York State Department of Financial Services to provide the highest level of customer protection.
When creating or redeeming BUSD, users do not need to pay a fee. Since mid-September 2019, BUSD has been available on the Paxos platform for direct purchase and redemption at a 1:1 ratio for USD or PAX tokens. On September 20 of the same year, BUSD appeared on Binance, where you can trade it in tandem with BTC and other coins.
BUSD is also available for instant buy, sell, or exchange operations at Switchere, which is characterized by the fastest order processing and instant delivery — in fact, you get your ordered amount of crypto within minutes after making a payment.
#4 Dai (DAI)
- Blockchain: Ethereum
- Market cap: $6,857,212,237
- Year of creation: 2016
DAI is a USD-pegged stablecoin issued in ERC-20 format and backed by digital assets. DAI is managed and maintained by the MakerDAO Foundation and issued through a smart contract platform. As an ERC20 token, DAI can be freely stored in personal software and hardware wallets, where users retain ownership of private keys.
Since DAI is regulated by smart contracts, this stablecoin cannot be confiscated or censored by the government or regulators. Another important point is that no registration or KYC processes are required to make purchase/redemption transactions with DAI. The coin is backed by Ethereum, a much more volatile asset than USD — it is more prone to price collapses, which poses some risks for holders compared to centralized stablecoins.
#5 True USD (TUSD)
- Blockchain: Ethereum, Avalanche, Harmony, Tron
- Market cap: $1,081,324,959
- Year of creation: 2018
True USD is one of the first USD-backed regulated stablecoins. The coin is known for its transparency, simplicity, and reliability, as it does not use any special algorithms. Each TUSD is backed by real USD deposited by users. The project was launched as a hedge against market volatility and created new opportunities for people who want to invest in real US dollars, not cryptocurrencies.
True USD was created and issued by TrustToken, and this organization also maintains the peg and reserves. A key feature of TUSD is the maximum emphasis on transparency. The asset is listed on many major cryptocurrency exchanges. Collateralized dollar accounts are constantly monitored and displayed in a live dashboard.
#6 Pax Dollar (USDP)
- Blockchain: Ethereum
- Market cap: $946,119,268
- Year of creation: 2012
Previously, this asset was known as Paxos Standard (PAX), but its essence has not changed. The company positions the coin as one of the best for storing wealth, as it combines the dollar’s stability with the efficiency of blockchain technology. USDP is issued by the Paxos trust company, which ensures that the funds are safe, properly audited, and regulated.
The Paxos team aims to turn the platform into a cutting-edge advanced payment service. Paxos has the legal right to transfer funds due to a regulated governance structure. The organization was founded in 2012 as an exchange called itBit but later changed its name to focus on providing blockchain services.
#7 USDD (USDD)
- Blockchain: Tron, BNB Chain, Ethereum
- Market cap: $724,556,158
- Year of creation: 2022
USDD is an algorithmic stablecoin in the Tron ecosystem, announced by Justin Sun in late April and launched in early May 2022. Just three days after that, the stablecoin TerraUSD (UST) lost its peg to the dollar.
USDD can boast a stable price and diverse use cases. It has a built-in incentive mechanism and a responsive monetary policy, which allows USDD to self-stabilize against any price fluctuations and help consolidate the value of USDD as a true settlement currency. Also, a decentralized currency protocol with a stable price will expand use cases for cryptocurrency, making it truly accessible with far-reaching implications for the blockchain space and the real economy.
What makes stablecoins that popular? Well, stablecoins help to resist volatility while providing accessibility and mobility inherent in cryptocurrencies. These coins are not subject to the rules and regulations of a centralized financial system, provide the opportunity for faster cross-border transfers, access to decentralized financial services, and eliminate intermediaries in transactions.
Such coins are not suitable for investment since they were originally created to maintain prices at the same level. So this is a peculiar and convenient form of digital money, not a speculative asset.
This information is provided for informational purposes only. Such information is not intended as and may not be relied upon as trading advice. Before deciding to trade cryptocurrencies, you should carefully consider your objectives, level of experience, and risk appetite. Please do your own research and due diligence on the services provided by online cryptocurrency trading platforms.