Stablecoins hit the 100 billion mark!
Since its founding, in the distant 2009, the blockchain industry, the digital economy has gone through many key stages. And even the most unprepared user can easily name the key ones: the emergence of Ethereum, and then the emergence of stablecoins. And today, in our time with you, the initially dubious instrument has grown into something more. Today, the total value of all stablecoins has reached a phenomenal $ 100 billion. And we will tell you how these assets achieved such heights. Let’s get started.
Who is in charge of the market?
We will rely on the data of the analytical publication The Block. It is an authoritative resource that you can safely trust. So, according to The Block’s calculations, it was 2021 that became fateful for every “stable cryptocurrency”. Indeed, in just 5 months, the capitalization of this market segment has tripled, reaching the coveted $ 100 billion. To date, the first place in terms of capitalization is, which is quite logical, the first stablecoin.
Tether (USDT) is Bitcoin from the stablecoin world. It was this asset that introduced the fashion for pegging the exchange rate to the US dollar. It was he who became the founder of a completely new branch of the industry. So the capitalization of $ 62.2 billion is fully justified. Today this tool is used by a wide variety of market participants. From ordinary people who use USDT in their everyday life, to large companies. After all, the coin is stable, predictable, technically flawless.
The second place in terms of capitalization is proudly taken by USD Coin (USDC). Token capitalization – $ 21.2 billion. And the value of a stable asset from the well-known exchange Binance has reached $ 8.8 billion today. Yes, Binance also has its own stablecoin called Binance USD (BUSD). All these coins are actively released on the market, they are used by a huge number of fans. This is confirmed by simple statistics from The Block: from May 17 to May 23, the market received $ 8 billion in stable tokens.
Why are stablecoins growing? Is it worth investing?
Many skeptics, back in the early days of the USDT, criticized the very concept of a stable cryptocurrency. Then these assets were reproached for calling into question the main feature of the Blockchain – decentralization, autonomy and independence. But, as practice has shown, the producers of such coins do not strive to gain universal recognition. They deserve the love and respect of the users for their work. After all, when all digital assets, including Bitcoin, Ripple and Ethereum, were steadily falling, people invested in Tether. During the last industry crash, this stable asset grew to a capitalization of $ 60 billion. As investors fear the extreme volatility of classic cryptocurrencies, they are in a hurry to reallocate their own investments. In an effort to focus on another digital medium, many are turning to Tether, USD Coin, Binance USD, and other stable digital currencies.
That is why, if you are also looking for the convenience of a digital currency, combined with the stability and reliability of classic settlement means, stablecoins should be your choice. And there is no need to be afraid that these assets will replace classic cryptocurrencies. This is a completely different tool, with its own tasks and priorities. Which can and should exist in the conditions of the modern market. In such a difficult time for the industry, it is extremely important to stay abreast of all the news from the world of Blockchain and high technologies. Read about all the events in our news feed. We publish only high-quality, interesting material. Thanks for attention. Good luck!