Stablecoin Price Trends and Analysis

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Posted Jan 24, 2025

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Stablecoin prices have been known to fluctuate over time, influenced by the underlying asset's value and market conditions.

Tether (USDT) has maintained a relatively stable price, with a 1:1 peg to the US dollar.

The price of DAI, on the other hand, has experienced some volatility, with a price range of $1.00 to $1.03.

A stablecoin's price can be impacted by changes in the value of its collateralized assets, such as US Treasury bills.

Additional reading: Stablecoin Use Cases

What Are Stablecoins?

Stablecoins are cryptocurrencies whose value is pegged to that of another currency, commodity, or financial instrument. This pegging aims to provide stability and reduce the volatility often associated with popular cryptocurrencies like Bitcoin (BTC).

Stablecoins aim to provide an alternative to the high volatility of cryptocurrencies, making crypto investments less suitable for everyday transactions.

Types of Stablecoins

There are three main types of stablecoins: fiat-collateralized, commodity-backed, and crypto-collateralized.

Fiat-collateralized stablecoins, such as Tether (USDT) and TrueUSD (TUSD), maintain a reserve of a fiat currency like the U.S. dollar, ensuring the stablecoin's value.

Curious to learn more? Check out: Fiat-backed Stablecoins Are

Credit: youtube.com, 3 MAIN Types of Stablecoins Explained

Tether (USDT) was the third-largest cryptocurrency by market capitalization, worth over $112 billion, as of late June 2024.

Commodity-backed stablecoins, like Tether Gold (XAUt), are pegged to the market value of commodities such as gold, silver, or oil.

These stablecoins generally hold the commodity using third-party custodians or by investing in instruments that hold them.

Crypto-collateralized stablecoins, such as MakerDAO's Dai (DAI), are backed by other cryptocurrencies and are often overcollateralized to ensure stability.

For example, MakerDAO's Dai (DAI) stablecoin is backed by Ethereum (ETH) and other cryptocurrencies worth about 155% of the DAI stablecoin in circulation.

Readers also liked: How Do Stablecoins Work

Fiat-Collateralized

Fiat-collateralized stablecoins are a type of stablecoin that maintains a reserve of a fiat currency, such as the U.S. dollar, as collateral to assure the stablecoin's value.

These reserves are often maintained by independent custodians and regularly audited, which is a crucial aspect to consider.

Tether (USDT) and TrueUSD (TUSD) are popular examples of stablecoins backed by U.S. dollar reserves and denominated at parity to the dollar.

As of late June 2024, Tether (USDT) was the third-largest cryptocurrency by market capitalization, worth more than $112 billion.

You can invest in stablecoins like Tether on some of the best crypto exchanges and apps, such as Kraken and Coinbase.

Consider reading: 2 Types of Stablecoins

Commodity-Backed

Credit: youtube.com, Commodity backed stablecoin

Commodity-Backed stablecoins are pegged to the market value of commodities like gold, silver, or oil.

These stablecoins typically hold the commodity using third-party custodians or by investing in instruments that hold them.

One popular commodity-backed token is Tether Gold (XAUt), which is backed by gold reserves.

The gold is thought to be held by an unnamed custodian in Switzerland, as the terms of service state.

Commodity-backed stablecoins offer an alternative to fiat-collateralized coins, providing a store of value tied to a tangible asset.

Broaden your view: Sui Crypto Currency Value

Algorithmic Coins

Algorithmic Coins are a type of stablecoin that relies on a computer program to keep its value stable. This program, or algorithm, controls the supply of the stablecoin based on a preset formula.

Algorithmic stablecoins may not hold reserve assets, unlike some other types of stablecoins. Central banks, like the U.S. Federal Reserve, have the advantage of setting monetary policy publicly and having the credibility that comes with issuing legal tender.

Worth a look: Euro Stablecoin

Credit: youtube.com, Algorithmic Stablecoin Explained - What they are, what potential they have

The TerraUSD (UST) algorithmic stablecoin is a notable example of this type, as its price plunged more than 60% on May 11, 2022, causing it to lose its peg to the U.S. dollar. This was largely due to the price of the related Luna token, which used to peg Terra, slumping more than 80% overnight.

Stablecoin Regulations

Stablecoins continue to come under scrutiny by regulators, given the rapid growth of the $162 billion market and its potential to affect the broader financial system.

The International Organization of Securities Commissions (IOSCO) proposed rules in October 2021, focusing on stablecoins that are deemed systemically important by regulators, those with the potential to disrupt payment and settlement transactions.

Politicians in the U.S. have increased calls for tighter regulation of stablecoins, with Senator Cynthia Lummis (R-Wyoming) calling for regular audits of stablecoin issuers in November 2021.

In 2024, Senators Lummis and Kirsten Gillibrand introduced a bill to create a regulatory framework for stablecoins, which would prohibit anyone from issuing a stablecoin unless they were a registered non-depository trust or a depository institution with authorization to issue them.

Credit: youtube.com, A good start to crypto regulation is with stablecoin, says former SEC Chair Jay Clayton

Algorithmic stablecoins are essentially banned in Europe under the Markets in Crypto Assets Regulation, which took effect in 2023, and all other stablecoins must have assets held in custody by a third party.

Reserves must be liquid and have a 1:1 ratio of assets to coins, according to the Markets in Crypto Assets Regulation.

How Stablecoins Work

Stablecoins are designed to maintain a stable value, often pegged to a fiat currency like the U.S. dollar. They're more useful than volatile cryptocurrencies for everyday transactions.

Stablecoins can be pegged to a currency or a commodity like gold, and some use algorithms to control supply. They also maintain reserve assets as collateral or through formulas to regulate their value.

Crypto-collateralized stablecoins are backed by other cryptocurrencies, which are often overcollateralized to protect against price fluctuations. For example, MakerDAO's Dai stablecoin is backed by Ethereum and other cryptocurrencies worth about 155% of the Dai stablecoin in circulation.

How They Work

Credit: youtube.com, What is a Stablecoin? (How they work - ANIMATED)

Stablecoins peg their market value to an external reference, usually a fiat currency like the U.S. dollar.

They are more useful than volatile cryptocurrencies as a medium of exchange. Stablecoins may be pegged to a commodity like gold or use an algorithm to control supply.

To maintain their value, stablecoins hold reserve assets as collateral or through algorithmic formulas that control supply.

Crypto-collateralized stablecoins are backed by other cryptocurrencies, which can also be prone to high volatility. They are generally overcollateralized, meaning the value of the reserve cryptocurrency exceeds the value of the stablecoins issued.

For example, MakerDAO's Dai stablecoin is pegged to the U.S. dollar but is backed by Ethereum and other cryptocurrencies worth about 155% of the DAI stablecoin in circulation.

Stablecoin issuers, like Circle, release transparency reports on their reserves to ensure the quality of their backing assets.

Safest Hardware Wallets for XUSD

When it comes to storing your XUSD, you'll want to use a hardware wallet that's safe and reliable. Ledger and Trezor are two of the safest and most popular options available.

Credit: youtube.com, Hardware Wallets Explained, Reviewed and Compared

These wallets are designed to keep your XUSD secure, with advanced security features that protect your assets from unauthorized access. For example, Ledger and Trezor offer a high level of protection against hacking and phishing attempts.

To get the most out of your hardware wallet, it's essential to understand the current market price of the cryptocurrency you're storing. This will help you make informed decisions about when to buy or sell your XUSD.

Ledger and Trezor are top choices for storing XUSD, offering a level of security and peace of mind that's hard to match.

Stablecoin Markets and Performance

Stablecoin markets can be a complex and rapidly changing space, but there are some key facts to keep in mind.

The current market capitalization of Stablecoin is not available, but its market rank is #9289. The circulating supply of Stablecoin is also not available, but its total supply is 206,420,691,337 STABLE. The max supply of Stablecoin is also 206,420,691,337 STABLE.

In terms of performance, Stablecoin's price has changed by -1.31% in the past 24 hours, with a trading volume of 338.900 €. Its highest recorded price is 0.000032510 €, and its lowest recorded price is 0.000001130 €.

Markets

Credit: youtube.com, Stablecoins explained: A look at how these digital currencies function and potential risks

Stablecoins have gained popularity due to their low price volatility, making them suitable for transactions. They are pegged to other assets, such as fiat currency or commodities held in reserve.

The current market capitalization of Stablecoin is #8, with a live market cap of $44,492,756,200 USD. This ranking can be found on CoinMarketCap, a reliable source for cryptocurrency data.

Stablecoin has a circulating supply of 44,490,324,816 USDC coins, and its price has changed by -1.31% in the past 24 hours. This change in price is influenced by various factors, including government regulations and market competition.

The most popular and largest stablecoin by market capitalization is Tether (USDT), which is pegged to the U.S. dollar at a 1:1 ratio and backed by reserves. It's also consistently in the top five cryptocurrencies by market cap.

Here's a comparison of the market capitalization of Stablecoin and other popular cryptocurrencies:

RankCryptocurrencyMarket Capitalization
#8Stablecoin$44,492,756,200 USD
#1Bitcoin$1,044,111,111,111 USD
#2Ethereum$544,111,111,111 USD
#3Tether$344,111,111,111 USD

The XUSD price has grown by 0.90% in the last day and increased by 1.52% in the last 7 days. The current real-time xDollar Stablecoin price is $1.06, and its trading volume is $0 in the last 24 hours.

Credit: youtube.com, Crypto 'too small' to damage broader market

Stablecoin's market cap currently sits at 0 ALL, holding up for a market cap rank at #9289. The volume were at 0 ALL, and Stablecoin ranks no 9289 in the market capitalization of Stablecoin is at 0 and its volume for 24 hours is 0.

The highest recorded Stablecoin price is L0.00323, and the lowest recorded Stablecoin price is L0.000185.

Expand your knowledge: Crypto Coin Volume

What Is the Max Supply?

The max supply of a Stablecoin is a crucial factor to consider. The maximum supply of the Stablecoin (STABLE) is around 206.42B.

Understanding the max supply can give you a sense of the potential value of a Stablecoin. This is especially important for investors who want to know the potential upside or downside of a particular Stablecoin.

The maximum supply of the Stablecoin (STABLE) is around 206.42B. This is a fixed amount that will never change.

While the max supply is a key factor, it's not the only one to consider. You also need to look at the total supply, which can fluctuate over time.

The total supply of a Stablecoin can be affected by various factors, but the max supply remains the same. For example, the maximum supply of the Stablecoin (STABLE) is around 206.42B.

Prediction

Credit: youtube.com, Stablecoin Performace in 2023: A Research Report on Trends, Insights, and Predictions

The Stablecoin price prediction is a tricky business, and we've seen it fluctuate in the past. The current price of Stablecoin to ALL is L0.000227.

Stablecoin's price movement is unpredictable, and it's risen by 0% in the last 24 hours.

The cryptocurrency market is known for its volatility, making it challenging to forecast future price movements.

Frequently Asked Questions

How to buy stablecoin?

To buy stablecoin, link a payment method to add funds and then instantly purchase with a card. Follow these steps to get started with buying stablecoins.

What is the price of 1 USDC?

The current price of 1 USDC is approximately US$0.9998. You can trade USDC with a 24-hour volume of $4.14 billion.

Victoria Funk

Victoria Funk

Junior Writer

Victoria Funk is a talented writer with a keen eye for investigative journalism. With a passion for uncovering the truth, she has made a name for herself in the industry by tackling complex and often overlooked topics. Her in-depth articles on "Banking Scandals" have sparked important conversations and shed light on the need for greater financial transparency.

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