The stablecoin economy is growing at a rapid pace as it hits $187 billion, which is very near to the $200 billion milestone. While the largest stablecoin is Tether, Terra’s USR and Neutrino Protocol’s USDN are increasing supply quite rapidly. They were the top gainers in issuance in the last 1-month with a 29.9% and 43.8% jump, respectively. This shows that we can easily soar past the $200B mark in the next few months.
Stablecoin market
In the last month, the largest stablecoin by market cap has increased 2% of its supply and has moved past $80 billion. USDT is massive in terms of its 42.78% share in the entire stablecoin market. Plus, it is also the 3rd largest cryptocurrency after Bitcoin and Ethereum. After Tether, we have USDC (USD Coin) with a $52.5 billion market cap making it another significant part of the total market. It contributes to 27.96% of the stablecoin economy and is the 5th largest cryptocurrency after Binance Coin (BNB) at number 4.
It is fascinating to see that out of the $187 billion stablecoin markets, the top 2 coins, USDT and USDC, contribute $132.5 billion, which is around 70.8%. This shows how much the market is dominated by them. Both these coins are essential trading pairs for many investors and future market traders as well.
UST, USDN and smaller stablecoins
Terra’s UST is one of the rising stablecoins, and investors have high hopes for the Luna and UST projects. Its issuance has increased by 29.9% in the last 1 month, and now it has a market cap of $14.7 billion. For USDN, the increase has been 43.8%, and it has a market cap of $638 million. Finally, we have a FRAX, another rising stablecoin that saw the issuance of 9.6% in the last 1 month and has a market cap of $2.9 billion right now.
At present, the stablecoin market represents approximately 10% of the entire crypto economy. Now some of you might ask what the benefits of stablecoin are. Well, primarily, it can be termed as the fiat of the crypto markets and acts as a buffer for trading other tokens. At the same time, by staking or depositing them, one can earn pretty good interest.
What are your thoughts as the Stablecoin economy hits $187 billion? And do you think that we will hit $200 billion by May 2022? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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