- The market capitalization of stablecoin is around $170 billion as of this month.
- The only category of coin that is trading in green during the last 7 days.
Stablecoins are cryptocurrencies pegged to some fiat value or similar assets, usually, that is USD. The low-risk trading option has price fluctuation only between $0 to $1.According to FSOC 2021 annual report, the growth is 500% over the past twelve months and the current market capitalization is estimated to be around $170 billion.
The crucial use of stablecoin is to exchange between platforms and for keeping hold in investment rather than buying or selling. A potential amount is invested and the interests are gained as profit. Another usage is in the form of collaterals, for borrowing other crypto tokens such as BTC or ETH, stablecoins are submitted as collaterals.
The Crypto market is in a bloodbath for the past week and one of the largest stablecoin Terra USD is trading downwards, the other stable seems to have withheld their position. USD Coin and Binance USD are the very few tokens that are trading up.
Dominance of Stablecoins
The market fluctuation has been dreadful in the last week, even BTC and ETH have touched remarkable lows, this has made the investors focus to turn on stablecoins such as USDT, USDC, BUSD, and so on. According to CMC, USDC has been largely trading in green and even the low doesn’t go below $0.9.
By CoinGecko statistics, Tether USD (USDT) has gained 3rd market cap rank with 5.8% market dominance. But experts predict that this is not something permanent, once the market gains stability the investments will be again poured back into BTC.